Question

Mrs reeta deposited a sum of Rs.8400 in a bank. After 2 years,she withdraw Rs.5200 and at the end of 4 years,she recieved Rs. 5288. Find the rate of simple interest

Answer 1

To find : To find rate of simple interest R = ?

Proof :

Let rate of simple Interest = R

Principal for first two years = I1 = P X R X T

                                                   __________

                                                          100

=> I1 = 8400 X R X 2

        _____________

                  100

=>I1 = 168 X R

Now we have,

Reeta with drawn Rs.5200 after two years

Then, principal for next 2 years = Rs 8400 - Rs 5200

                                                     = Rs 3200

=> I2 = 3200 X R X 2

         _____________

                   100

=>I2 = 64 X R

Now,

I1 + I2 + 3200 = 5288

=> 168 X R + 64 X R = 5288 - 3200

=> 232 X R = 2088

=> R = 2088÷23 =  90.78  = 9%

Hence, The rate of simple interest = 9%