Final answer:
To calculate the rate of interest that Radikha pays on a sum of 45000 for 3 years with a total interest of 7500, use the formula Interest = Principal × rate × time, which results in a rate of interest of 5.56%.
Step-by-step explanation:
The student is seeking to find the rate of interest Radikha pays for a sum of 45000 over 3 years, given that the interest paid is 7500. To solve this, we can use the formula for simple interest: Interest = Principal × rate × time. Here, we have:
- Interest (I) = 7500
- Principal (P) = 45000
- Time (T) = 3 years
Substituting the given values into the formula, we get:
7500 = 45000 × rate × 3
Divide both sides by (45000 × 3) to find the rate:
7500 / (45000 × 3) = rate
This simplifies to:
rate = 7500 / 135000
rate = 0.0556 or 5.56%
The rate of interest that Radikha is paying is therefore 5.56%.