Question

at what rate of interest per annum would an amount $400 yield a simple interest of $120 in two years​

Answer 1

Answer:

Let rate of interest be x % p.a.

($400 × x ×2)/100 = $120

=> $4 × x × 2 = $ 120

=> $8x = $120

=> x = 120/8 = 15

So, rate of interest = 15% p.a.

Answer 2

Therefore the Rate of Interest per annum would be 15 %.

Given:

Principal Amount  = P = $ 400

Time Period = T = 2 years

Simple Interest after 2 years = SI = $ 120

To Find:

Rate of Interest =?

Solution:

This numerical can be simply solved using the below formula.

⇒ Simple Interest SI = PTR / 100

Where P = Principal amount

T = Time Period

R = Rate of Interest

⇒ SI = PTR / 100

⇒ 120 = ( 400 × 2 × R ) / 100

⇒ 120 = 8 R

⇒ R = 120 / 8 = 15

Therefore the Rate of Interest per annum would be 15 %.

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