Question
A sum of money amounts to Rs. 5600 in 5 years at simple
interest. If the principal is Rs. 4000, find the rate of interest per annum.Solution
Amount A = 5600 Principal P = 4000 Simple Interest SI = A − P = 5600 − 4000 = 1600 Formula: SI = (P × R × T) / 100 1600 = (4000 × R × 5) / 100 1600 = (4000 × 5 × R) / 100 1600 = (20000R) / 100 1600 = 200R R = 1600 / 200 = 8%
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