Question

Mr Jane donates 1 lakh rupees to a school and the interest on it is to be used for awarding 5 scholarship of equal values .
if the values of each scholarship is 1500 find the rate of interest

Answer 1

Given that Mr.Jane donates 1,00,000 rupees.

So, Principal = 1,00,000.

Given, Time t = 1 year.

Given that interest is to be used for awarding 5 scholarship of equal values.

Given that value of each scholarship = 1500.

So, Total interest = 5 * 1500

                             = 7500.

We know that SI = PTR/100

⇒ 7500 = 100000 * R/100

⇒ 7500 * 100 = 100000 * R

⇒ 750000 = 100000 * R

⇒ R = 7.5.

Therefore, Rate of interest = 7.5%.

Hope it helps!

Answer 2

donated money = ₹1,00,000


value of each scholarship = ₹1500


value of 5 scholarship = 5 × 1500

= ₹75,00


thus , interest = ₹75,00


S.I = (p × r × t)/ 100


75,00 = ( 1,00,000 × r × 1)/ 100



r = 75,00 ÷ 1000 = 7.5%


Answer: rate of interest = 7.5%