Question
Rs. 6,500 becomes Rs. 8,190 in 3 years at simple interest.
Determine the rate of interest per annum.Solution
ATQ,
Interest earned = 8,190 - 6,500 = Rs. 1,690
Simple interest = Principal × rate × time ÷ 100
So, 1,690 = 6,500 × rate × 3 ÷ 100
Or, 1,690 = 195 × rate
Or, rate = 8.67
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