Question

If the simplest interest on 2000 for 10 years is 1400 then what is the interest rate

Answer 1

Given,

Simple interest,

`SI=1400`

Principal,

`P=2000`

Time,

`t=10\text{ years}`

Calculate the interest rate.

`\begin{gathered} SI=(P* R* t)/(100) \\ 1400=(2000* R*10)/(100) \\ 14=2R \end{gathered}`

Thus, the rate of interest is

`\begin{gathered} 2R=14 \\ R=7 \end{gathered}`

Therefore, the rate of interest is R = 7%.