Question

At what rate of interest pa will Rs250 amount to Rs 3000 in 4 yrs​

Answer 1

Solution!!

The concept of simple interest has to be used here. The amount, principal and time is given. We have to find the rate of interest. To do so, we need to know the interest.

Principal (P) = Rs 250

Time (T) = 4 years

Amount = Rs 3000

Rate of interest (R) = ?

Let's find the interest.

Interest = (P × R × T)/100

Interest = (250 × R × 4)/100

Interest = 10 R

Amount = Principal + Interest

Rs 3000 = Rs 250 + 10 R

Rs 3000 - Rs 250 = 10 R

Rs 2750 = 10 R

R = 2750 ÷ 10

R = 275%

Rate of interest = 275%

Note:- The rate of interest can never be so much!!