Question

Meena borrowed rs125000 from a bank to buy a car. She returned rs 172500 with interest after 4years. Find the rate of interest.

Answer 1

$\frac{172500}{125000\\}$ = 1.38

Answer 2

Answer:

The rate of interest applied is 8.3 %

Step-by-step explanation:

Give as :

Principal borrowed fom bank = Rs 125000

The Amount return after 4 years = Rs 172500

The time period = 4 years

let The rate of interest = R %

From compound interest method

Amount = principal ×  $(1+\dfrac{rate}{100})^{Time}$

Or, Rs 172500 = Rs 125000 × $(1+\dfrac{R}{100})^{4}$

Or, $\dfrac{172500}{125000}$ = $(1+\dfrac{R}{100})^{4}$

Or, $(1+\dfrac{R}{100})^{4}$ = 1.38

Or, 1 + $\dfrac{R}{100}$ = $1.38^{\frac{1}{4}}$

Or, 1 + $\dfrac{R}{100}$ = 1.083

Or, $\dfrac{R}{100}$ = 1.083 - 1

or, $\dfrac{R}{100}$ = 0.083

∴  R = 0.083 × 100

i.e R = 8.3 %

Hence, The rate of interest applied is 8.3 % Answer