Question

 Mohan pays an interest of Rs. 490 for 2 years on a sum of Rs. 3500, find the rate of interest. ​

Answer 1

Answer:

7% per annum

Step-by-step explanation:

Mohan pays interest of ₹490

Period, T = 2 years

Principal, P = ₹3500

Let's assume the rate of interest is R% per annum

∴ Interest Payable  $=\frac{PRT}{100}$ = 490

∴  $R=\frac{490x100}{3500x2}$ = 7