Question

Payal borrowed Rs 8000 from Aniket at the end of the four years she had to pay Rs 11200 what was the rate of interest​

Answer 1

Solution!!

The concept of simple interest has to be used here. The principal, amount and time is given. We need to find the rate of interest.

Principal (P) = Rs 8000

Time (T) = 4 years

Amount = Rs 11200

Let the rate of interest be R. Let's find out the interest first.

Interest = (P × R × T)/100

Interest = (8000 × R × 4)/100

Interest = 320 R

Amount = Principal + Interest

Rs 11200 = Rs 8000 + 320 R

Rs 11200 - Rs 8000 = 320 R

Rs 3200 = 320 R

Rs 3200 ÷ 320 = R

R = 10%

The rate of interest was 10%

Formulae to remember:-

→ Interest = (P × R × T)/100

→ Amount = Interest + Principal