Question

A man paid 8640rs for a loan of 8000rs taken for 320 days. Find the rate of simple interest charged by the bank

Answer 1

Rate of simple interest charge by bank is 9.125

Explanation:

Given as :

The principal = Rs 8000

The amount paid = Rs 8640

The time period = 320 days

Let the rate of simple interest = R

So from simple interest method

Simple Interest =
`(Principal* rate* Time)/(100)`

∵, Interest = Amount - principal

Or, Interest = Rs 8640 - Rs 8000 = Rs 640

∴ Rs 640 =
`(8000* rate* (320)/(365))/(100)`

Or, 64000 × 365 = 8000 × 320 × rate

Or 23360000 = 2560000 × rate

So, rate =
`(23360000)/(2560000)`

∴ Rate = 9.125

I.e rate of simple interest charge by bank is 9.125 Answer