Question

The simple interest eamed on a certain sum in 5 years is 30% of the sum. Find the rate of interest

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Answer 1

Let's,

Principal = ₹1000

Simple Interest = 30% of Principal

Simple Interest = 30/100 × ₹1000

Simple Interest = ₹300

Rate = (Simple Interest × 100)/(Time × Principal)

Rate = (300 × 100)/(5 × 3000)

Rate = 6%

Answer 2

Let the sum = (P) = ₹ 100

S.I. = (30/100) × ₹ 100 = ₹ 30

Period (T) = 5 Years

∴ Rate = (S.I. × 100)/(P × T) = (30 × 100)/(100 × 5) = 6%