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- Let Principal is Rs P
and
- Let Rate of interest be R % per annum.
- Let Simple Interest be represented by 'I'.
So,
Now,
- On Subtracting equation (2) from equation (1), we get
Now,
- Substitute the value of I in equation (2), we get
Now,
We have
- Simple interest for 1 year = Rs 300
and
- Principal, P = Rs 5000
So,
- Rate of interest is given by
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