Question

If a person who borrowed rs.500 settled the loan in one year by paying back rs.560,find the annual interest rate that was charged

Answer 1

Here is your answer:

Principle= Rs.500

Amount paid = Rs. 560

Interest = Rs 560 -Rs. 500=Rs. 60

So

Si=P*R*T/100

60=500*R*1/100

R= 12%

hope you understand