Question

Khushnaz borrows a sum of ₹8000 for 2 years at S.I. and immediately lends out this money to another person for the same time at same rate .if she makes profit or ₹96.80 on this transaction at the end of two years,calculate the rate of interest

Answer 1

The Rate of Interest at the end of 2 years is 0.3%.

Given:-

Principal Amount (p) = Rs. 8,000

Time (t) = 2 years

Profit = Rs. 96.80

To Find:-

Rate of Interest.

Solution:-

To find the rate of interest, here are the given steps you need to follow, which include.

As

Principal Amount (p) = Rs. 8,000

Time (t) = 2 years

Profit = Rs. 96.80

Rate (r) =?

Before going to the Rate of Interest, first, we have to find the Simple Interest.

S.I. =

$\frac{ p\times r \times t}{100}$

S.I. =

$\frac{8000\times r \times 2}{100}$

S.I. = 160*r

So, for 1 year S.I. = 160*r

and for 2 years S.I. = 320*r

Also, this S.I (for 2 years) = Profit

$320 \times r = 96.80$

$r = \frac{96.80}{320}$

$r = 0.3$

Hence, the Rate of Interest at the end of 2 years is 0.3%.

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