The distance between A and B on a plan is 5mm.if the scale of plan is 1:1250
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At what rate of simple interest will Rs. 1,000 amount to Rs. 1200 in two years?
SI = PNR/100
SI=SIMPLE INTEREST
P=PRINCIPAL
N=NUMBER OF YEARS
R= RATE OF INTEREST
From the question,
P+SI=1200 , P=1000 & N=2
1000+SI=1200
That is SI=1200–1000
SI=200.
Now put all the above in the formula.
SI=PNR/100
200= (1000*2*R)/100
20000=2000R
Now, R = 20000/2000
R=10
So, At 10% rate of simple interest will Rs.1000/- amount to Rs.1200/- in 2 years.
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