Question

Rahul borrow rs 50000 from a bank on 1march 2014 and paid back rs 53150 on 6 october 2014. find the rate of interest charged by the bank.

Answer 1

A = P+I

and I = p*n*r/100

P = Rs. 50,000 and A = Rs. 53,150.

I = 53,150 - 50,000 = 3,150

n = 6 Oct, 2014 - 1 Mar, 2014 = 8 months 6 days = 8 6/31 months = 254/31 months = 254 / (31*12) years.

therefore, 3150 = 50,000 * 254 * r / (100*31*12)

Or r = 3150 * 100 * 31 * 12 / (50,000 * 254) = 9.22%

Therefore, the interest rate charged by the bank is 9.22%.

Answer 2

The most correct answer for this