Question

simple interest sum becomes 6/5 of itself into 2 1/2 years the rate of interest per annum is??

Answer 1

r = $\frac{2}{25}$ %

• The interest on a loan or principal amount can be easily calculated using simple interest. Simple interest is a notion that is employed across a wide range of industries, including banking, finance, automobiles, and more. When you pay back a loan, the monthly interest is deducted first, and any remaining funds are applied to the principle.
• The Simple Interest (S.I.) formula is a way to figure out how much interest will accrue on a given principal sum of money. However, borrowing money is not unrestricted in the actual world. You frequently need to take out a loan from a bank to borrow money. In addition to the loan amount, you must pay back additional funds based on the loan amount and the length of time you borrowed the money. We refer to this as simple interest. This phrase is frequently used in banking.

Here, according to the given information,

Let the principal sum be x.

Then, the amount is $\frac{6x}{5}.$

Now, we know that,

Amount = $P(1+rt)$, where P is the principal, r is the rate of interest and t is the time.

Now, we get,

$\frac{6x}{5} =x(1+r.\frac{5}{2} )$

Or, $\frac{6}{5} -1=\frac{5r}{2}$

Or, r = $\frac{2}{25}$ %

Hence, r = $\frac{2}{25}$ %

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