Question

suman lent some money to her friend for 2 years for which she received 2500 as interest. If her friend paid back a total of 13,750 then what was the rate of interest.
​

Answer 1

Answer: The rate of interest is 11.11%

Step-by-step explanation:

Interest (I) = 2500

Profit-Principal (A) = 13750

Principal (P) = (13,750 - 2500) = 11,250

Time (n) = 2 years

Rate of Interest (r) = ?

We know, r = (I x 100)/(P x n)% = (2,500 x 100)/(11,250 x 2)% = 11.11%