Question
A principal amount of Rs. 2,000 earns a simple interest of
Rs. 375 in 2 years and 6 months. What is the annual rate of interest?Solution
ATQ,
Let the rate of interest = ‘r%’ p.a.
2 years and 6 months = 2 × 12 + 6 = 30 months
We have,
[2000 × r × (30/12)] ÷ 100 = 375
⇒ 50r = 375
⇒ r = 375 ÷ 50 = 7.5
So, rate of interest = 7.5%
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