Question
If Rs. 1,800 is invested and earns Rs. 270 as simple
interest in 1 year and 6 months, find the rate of interest per annum.Solution
ATQ,
Let the rate of interest = ‘x%’ p.a.
1 year and 6 months = 1 × 12 + 6 = 18 months
We have,
[1800 × x × (18/12)] ÷ 100 = 270
⇒ 27x = 270
⇒ x = 270 ÷ 27 = 10
So, rate of interest = 10%
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