Question

Mr. Jane donates Rs 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 Rs 1,500, find the rate of interest.solution of this question

Answer 1

Value of each scholarship = 1500
No of scholarships required = 5
Amount of scholarships required = 5 * 1500 = 7500

Interest = (Principal * Rate *Time)/ 100
7500 = (100000 * R * 1)/100
750000 = 100000R
7.5 % = R
So, rate of interest = 7.5%