Question

what rate per cent per annum will $250 amount to $330 in 4 years?

Answer 1

Concept:

If the rate of interest per cent per annum is r% and total sum of money is P and the time of investment is T, then the simple interest (I) is given by,

I = (P*r*T)/100

Given:

For a certain rate per cent per annum the sum $250 will amount to $330 in 4 years.

Find:

The rate per cent of interest per annum.

Solution:

Let the rate per cent of simple interest per annum is = r%

Here in this problem the time of investment (T) = 4 years

The principle money is (P) = $250

It will amount to $330

Then obtained total interest (I) = $(330-250) = $80

According to the simple interest formula we get the mathematical equation,

I = (P*r*T)/100

80 = (250*r*4)/100

80 = 10r

r = 80/10

r = 8

Hence the rate per cent of interest on $250 for 4 years is given by 8% per annum.

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Answer 2

The rate of interest is 8%.

Given principal is $250

Total amount (Principal+interest) = $330

Time = 4 years

We need to find the rate of interest

What is simple interest?

Simple interest is a quick and simple formula for figuring out how much interest will be charged on a loan. The daily interest rate, the principle, and the number of days between payments are multiplied to calculate simple interest.

Formula of simple interest = $\frac{ptr}{100}$ , where p = principal, r = rate of interest and t = time

let the rate of interest be $x\%$

Therefore,

$330-250=\frac{250 \times 4 \times x}{100}\\\Rightarrow 80=\frac{25 \times 4 \times x}{10}\\\Rightarrow 80=10x\\\Rightarrow x=8$

Hence, the rate of interest is 8%.

To learn more about simple interests from the given link

brainly.in/question/16329409

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