Question

surendar borrowed rupees 45000from a bank for purchasing a bike. he returned an amount of rupees 48375 with interest after 1 year and 6 months. find the interest and rate of interest​

Answer 1

Solution!!

The concept of simple interest has to be used here. The principal, amount and time is given. We have to find the rate of interest and the interest.

Principal (P) = Rs 45000

Amount = Rs 48375

Time (T) = 1 year 6 months = 1.5 years

Rate of interest (R) = ?

We know that,

Amount = Principal + Interest

So,

Interest = Amount - Principal

Interest = Rs 48375 - Rs 45000

Interest = Rs 3375

We also know that,

Interest = (P × R × T)/100

So,

R = (Interest × 100) ÷ (P × T)

R = (3375 × 100) ÷ (45000 × 1.5)

R = 3375 ÷ 675

R = 5%

Interest = Rs 3375

Rate of interest (R) = 5%