Question

basha borrowed ₹8500 from a bank at a particular rate of simple interest.After 3 years,he paid ₹11050 to settle his debt. ar what rate of interest he borrowed the money?​

Answer 1

The rate of interest was 10%

Step-by-step explanation:

Given that, sum (P) = ₹ 8500,

time (t) = 3 years and

amount paid after 3 years = ₹ 11050

Then interest (I) = ₹ (11050 - 8500)

= ₹ 2550

Let r% be the rate of interest.

We use the formula I = Ptr/100 to find r.

So 2550 = (8500 × 3 × r)/100

or, 85 × 3 × r = 2550

or, 255r = 2550

or, r = 10

Therefore the rate of interest was 10%.