Question

What rate gives ₹ 8,960 as interest on a sum of ₹ 56,000 in 2 years.​

Answer 1

Answer:

Step-by-step explanation:

A =  ₹56,000

n = 2 years = 24 months.

I = ₹8,960

Remember that you have to convert years to months (multiply by 12) if the question gives the time period in years.

Remember the two main formulas.

Amount = (Principal x number of months) + Interest.

Interest = $\frac{Pn(n+1)r}{2400}$

We can find the Principal, as the number of years, Interest and Amount are given.

56,000 = P(24) + 8960

24P = 47040

P = ₹1960

Now, we substitute the value of P in the Interest formula to find rate.

Interest = $\frac{Pn(n+1)r}{2400}$

8960 = $\frac{(1960)(24)(25)r}{2400}$

After cancelling some terms, we are left with:

8960 = (196)(2.5)r

8960 = 490r

r = 18% (approx).