Question

rajesh borrowed rs 5000 from a bank. he will have to pay rs 10000 after 5 year. find the rate of interest, if the interest is payable half yearly?

Answer 1

SOLUTION:

Principal = Rs 5000

Amount = Rs 10000

Simple Interest = Amount - Principal = Rs(10000 - 5000) = Rs 5000

Time = 5 Years

∵ Rate = 100×S.I / P×T

= 100×500 / 5000×5

= 20%

As it is gives Half Yearly Payable so, Int will be

20/2 = 10% (Ans)

Hope it works.

Answer 2

we are given

Principal = Rs 5000

Amount = Rs 10000

Simple Interest = Amount - Principal

Simple Interest = 10000 - 5000=  5000

given Time = 5 Years

formula for interest rate is

interest Rate = 100×S.I / P×T

interest rate= 100*500 / 5000*5

interest rate=50000/25000

interest rate= 20%

As  Payable interest is

hence

Interest will be

20/2 = 10%