Question

If rupee one produces rupees nine over a
period of 40 years, find the rate of simple
interest?

​

Answer 1

Rate of simple interest is 20% p.a.

Step-by-step explanation:

We have

• Principal ( P ) = Rs. 1
• Amount = Rs. 9
• ∴ interest ( I )= Rs. (9 - 1) = Rs. 8
• Time ( t ) = 40 years
• We have to find rate of interest ( r ) = ?

Using I = Ptr/100 formula, we get

8 = 1 * 40 * r / 100

or, 8 = (2 / 5) * r

or, r = 8 * 5 / 2

or, r = 20

∴ the required rate of interest is 20% p.a.

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