Question

Sohan deposited 1000 rupees in bank and got 1840 rupees in 6 years in terms of simple rate of interest.State the percentage rate per annum of simple interest banks paid to him?

Answer 1

Answer:

Principal amount (p) = Rs. 1000

Time period (n) = 6 years

Interest rate (r)= ?

Simple interest gain = Rs.(1840 - 1000)

= Rs. 840

Simple interest = p.n.r/ 100

or r = (Simple interest x 100)/ (p.n)

= (840 x 100)/ (1000 x 6)

= 14

So, simple interest rate is 14%.

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