Question
A sum lent out at simple interest amounts to 6076 in 1
year and 7504 in 4 years. The sum and the rate of interest p.a. are respectivelySolution
year                     Amount 1year                   6076......(1) 4year                   7504......(2) for interest difference between eq (1) and (2) 3            = 1428 1            =476 to equation (1) ... SI=476 A=6074 P=6074-476=5600 P=5600rs then R = (476×100)5600×1 =47600/5600 =476/56=119/14 =8.5%
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