Question
Rs. 15,000 becomes Rs. 21,900 after 6 years on simple
interest. What is the rate of interest per annum?Solution
ATQ,
Interest earned = 21,900 - 15,000 = Rs. 6,900
Simple interest = Principal × rate × time ÷ 100
So, 6,900 = 15,000 × rate × 6 ÷ 100
Or, 6,900 = 900 × rate
Or, rate = 7.67
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