Question

Find the rate of interest when Principal is Rs. 5000, Simple interest is Rs. 1200 and Time is 3 years.

Answer 1

Given,

• Principal amount (P) = Rs 5000

• Simple interest (I) = Rs 1200

• Time (n) = 3 years

Rate of interest can be calculated by the equation:

${\boxed{\sf{Rate \ of \ interest \ (R) =\dfrac{Simple \ interest \ (I)\times \ 100}{Principal \ amount \ (P)\times Time(n)}}}$

Applying values to the equation:

$\sf{\implies R=\dfrac{1200\times 100}{5000\times 3}}$

$\sf{\implies R=\dfrac{120000}{15000}}$

$\sf{\implies R=\dfrac{120}{15}}$

$\sf{\implies R=8\%}$

${\boxed{\sf{\therefore Rate \ of \ interest \ (R) =8\%}}$

Answer 2

Answer

principal - rs 5000

si - rs 1000

time - 3 years

1. rate - si ×100 / principal × time
2. rate - 1200 ×100/5000×3
3. rate - 8%