Question

Qs1) If Rs 750 becomes Rs 873.75 when invested at a simple interest rate for 5 years 6 months. Find the rate of interest per annum.
By working explain it please ​

Answer 1

Answer:

3%

Step-by-step explanation:

P=750 Rs.

Amt= 873.75

SI= Amt-P

= 873.75-750

=123.75 Rs

T= 5 yrs and 6 months i.e. 5.5 years

R= SI*100/P*T

= 123.75*100/750*5.5

=3%

Answer 2

Given :

Principle (P) = Rs 750

Amount (A) = Rs 873.75

Time (T) = 5 years 6 months = 5.5 years

To Find :

The rate of interest per annum.

Solution :

Simple Interest (SI) is a method of calculating the interest for a particular amount of money at some rate of interest.

Simple Interest (SI) = Amount - Principle

                                                 = 873.75 - 750

                                                 = Rs. 123.75

Now,

Simple Interest (SI) = $\frac{P*R*T}{100}$

Where, P = Principle; R = Rate; T = Time duration (in years)

             SI  =   $\frac{P*R*T}{100}$

⇒   123.75  =  $\frac{750 * R * 5.5}{100}$

⇒           R   =  3%

Therefore, the rate of interest per annum is 3%.