Question

Ram borrowed Rs 7000 from the bank at a simple interest rate. After 3 years he returned Rs 3000 to the bank and after 5 years of borrowing he deposited Rs 5450 in the bank and returned all the money with interest. Determine the interest rate. (1) 4% (2) 5% (3) 6% (4) 7%.

Answer 1

Answer:

5%. IND.

Step-by-step explanation:

for first 3 yrs

s.i = 7000×r×3/100 = 210r

for last 2 yrs ,p = 7000-3000 = 4000

& s.i = 4000×r×2/100 = 80r

total s.i = 8450-7000 = 1450

290r = 1450 => r = 5%

option (2) is correct