Question

If Rs.700 amounts to Rs.868 in 4 years, calculate the rate of interest

Answer 1

ANSWER :-

• Rate of interest (R) = 6%

GIVEN :-

• Principal = Rs 700
• Amount = Rs 868
• Time = 4 years

TO FIND :-

• Rate of interest.

TO KNOW :-

★ S.I = A - P

S.I = A - P★ S.I = PRT/100

Here ,

• S.I → Simple interest
• A → Amount
• P → Principal
• R → Rate of interest
• T → Time

SOLUTION :-

We have ,

• A = 868Rs
• P = 700Rs
• S.I = ?

We know , S.I = A - P

S.I = 868 - 700

S.I = 168Rs

____________________

We have ,

• S.I = 168Rs
• T = 4 years
• P = 700Rs
• R = ?

We know , S.I = PRT/100

→ 168 = [700 × R × 4] /100

→ 168 = 7 × R × 4

→ 168 = 28R

→ R = 168/28

→ R = 6%

Hence , 6% is the Rate of interest.

VERIFICATION :-

• P = 700Rs
• R = 6%
• T = 4 years
• S.I = 168

S.I = PRT/100

168 = [700 × 6 × 4]/100

168 = 7 × 6 × 4

168 = 168 (verified)