Question
A person borrowed some money on simple interest. After 3
years, he returned 4/3 of the money to the lender. What was the rate of interest?ÂSolution
Let the amount borrowed be P, The amount returned by the person = 4P/3 Extra money he returned = Interest = (4P/3 -P) Interest = P/3 By using the formula of Simple interest, ( P×R×T)/100= P/3 R ×T = 100/3 Putting the value of T, T = 3 Rx 3 = 100/3 R = 100/9 R =11(1/9)%
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