Question

If Manohar pays an interest of Rs 750 for 2 years on a sum of rs 4500, then the rate of interest is -

Answer 1

Answer:

Given,

        Total interest paid, SI = 750 Rupees

        The time for which Manohar pays interest is, t = 2 Years

         Principal Amount, P = 4500 Rupees

Consider,

                      The rate of interest be r %

We know that,

                            Interest, SI = (P × r × t) / 100

Therefore,  Rate of Interest , r = (SI × 100) / (P × t)

Now, putting the value in the above equation, we get,

                   Rate of Interest, r = (750 × 100) / (4500 × 2)

                                          ⇒ r = 75000/9000 = 75/9

                                          ⇒ r = 8.333 %

Therefore, Manohar pays the interest with a rate of interest of 8.333 % or 25 / 3 %.

Step-by-step explanation:

To solve this question, we already know the formula for Simple Interest (SI). It is given by,

                            Interest, SI = (P × r × t) / 100

Where,

                          P is the Principal amount.

                          r is the rate of interest.

                          t is the time.

To find the rate of interest directly, we transform the formula by simple equation transformation.

Therefore,  Rate of Interest , r = (SI × 100) / (P × t)

This is the required formula to solve this question, we put all the given values and determine our answer.