Question

Find the rate of interest per annum at which ₹ 5000 will amount to ₹ 6, 050 in 3
years.

Answer 1

7%

Explanation:

Using the formula

Amount = Principal + Interest

Give the following

Principal = ₹ 5000

Amount =₹ 6050

Time = 3 years

Required

Time

Substitute into the formula

A = P + I

A = P + PRT/100

6050 = 5000 + 5000(R)(3)/100

6050 - 5000 = 150R

1050 = 150R

R = 1050/150

R = 7

Hence the rate of interest is 7%