Question

At what rate percent per annum
a sum of 1,200 will become
1.560 in 5 years at simple
interest?​

Answer 1

Answer:

Rate of interest is 6 per cent per year

Step-by-step explanation:

P = initial amount = Rs.1,200

R = rate of interest per cent per year = ?

T = time period in years = 5

A = final amount at the end of period T = 1560

Using simple interest formula, we know that:

A = P + (P*R*T/100)

=> 1560 = 1200 + (1200*R*5)/100

=> 360 = (1200*R*5)/100

=> 360 = (12*R*5)

=> 60*R = 360

=> R = 6

The required rate of interest is 6 per cent per year.