Question

Find the rate of interest at which Rs 90,000 will amount to RS 1,15,600 in 2 years .

Answer 1

Given:

Principal (P) = 90000

Amount(A) = 115600

Time (T) = 2 years

To Find:

The rate of interest at which Rs 90,000 will amount to Rs 1,15,600 in 2 years .

Solution:

If the principal amount, rate of interest, and time period is mentioned, simple interest is calculated by the formula:

Simple Interest (SI) = Amount (A) - Principal (P)

                                  = (115600 - 90000) = 25600

Also,   $SI = \frac{P.R.T}{100}$

⇒ $R =\frac{SI X 100}{P.T}$

⇒ $R = \frac{25600X 100}{90000X2}$

⇒ R = 14.23%

Hence, the rate of interest at which Rs 90,000 will amount to Rs 1,15,600 in 2 years is 14.23%