Mr Jane donates 1 lakh to a school and the interest on it is to be used for awarding five scholarships of equal value. If the value of each scholarship is 1,500, find the rate of interest.
Answers
Answer:
Hint:
Here, we are required to find the rate of interest. We will first find the value of 5 scholarships by multiplying 5 the value of each scholarship. We will use the information given in the question to find the simple interest. Then we will use the formula of simple Interest and substitute all the given values to find the required rate of interest per annum.
Formula Used:
We will use the formula of simple interest, S. I = P. R.T 100 where S. Iis the Simple
Interest, P is the Principal, R is the rate of
interest per annum and T is the time period.
Complete step by step solution:
We know that Mr Jane donated Rs. 1 lakh to a
school. Hence, the Principal, P = Rs1,00,000
Also, the value of each scholarship is Rs 1,500. Therefore, the value of 5 scholarships
= 5 x Rs1500
Rs.7500. Now, it is given
that the interest on the principle will be used for awarding five scholarships of equal value.
Hence, Simple Interest, S. I = Value of 5 scholarships
S. I= Rs7500
We know that,
Rate of interest per annum = R%
Time Period, T = 1 year
We will now find the rate of interest using the
formula S. I = P.R.T
100
Multiplying both sides by 100, we get
S. I x 100 = P. R.T
USE APP
Now, substituting the values P = = 1,00,000,
T 1 year and S. I equation, we get, Rs7500 in the above
⇒ 7500 x 100 - (100000) R. (1)
Multiplying the terms, we get
⇒ 750000 (100000). R
Dividing both sides by 1,00,000, we get
75
10
R
Dividing 75 by 10, we get
=> R= 7.5%
Hence, Rate of interest, R = 7.5%
Answer:
1500*5=7500
(7500/100000)*100=7.5 percent