Question
Shankar borrowed Rs. 7,200 at simple interest and repaid
an amount of Rs. 9,504 after 7 years. If the interest rate p.a charged for first 4 years was 5% p.a., find the interest rate p.a. charged for the last 3 years.Solution
S.I. = 9,504 – 7,200 = Rs. 2,304 ∴ (7200 × 4 × 5)/100 + (7200 × 3 × R)/100 = 2,304 ⟹ 1440 + 216 R = 2,304⟹ 216R = 864 ∴ R = 4% p.a.
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