Question

At what rate per cent per annum simple interest will ₹ 3625 amount to ₹ 4495 in 2 years ?

Answer 1

Let the amount invested be P =3625

Interest rate be R

n = 2 years

We know that simple interest formula

for Principal P, interest rate R and years N = PNR/100

Simple interest = 3625(2)R/100

As per given information interest gained

= final amount - Principal

Final amount = 4495

Hence simple interest for 2 years = 4495-3625=870

Equating these two we get

3625(2)R/100=870

R = 870(100)/3625(2) = 12

Thus rate of interest =12%