Question

Find the rate of interest when: (i) P = 500; 1 = 100; T = 4 years​

Answer 1

Answer:

Given that ;

Principal ( P ) = Rs.500

Interest ( I ) = Rs. 100

Time ( T ) = 4 years

Rate of interest ( i ) = ?

Simple Interest ( I ) = Rs. 100

Formula :

I = P × i × T

100 = 500 × i × 4

100 / 500 × 4 = i

i = 1 / 20

i = 0.05

or ;

i = 1 / 20 × 100

i = 5 %

Hence ;

Rate of Interest ( i ) = 5%