Question

John borrows 6000 for 4 years and pays 1200 as interest. Find the rate of interest charged per annum.

Answer 1

The rate of interest is 5%.

Explanation:

Given :

• ✧ Principle = Rs.6000
• ✧ Simple interest = Rs.1200
• ✧ Time = 4 years

To Find :

• ✧ Rate of Interest

Using Formula :

`\star{\small{\underline{\boxed{\sf{\red{R = (S.I * 100)/(P * T)}}}}}}`

• »» R = Rate
• »» S.I = Simple Interest
• »» P = Principle
• »» T = Time

Solution :

Substituting the given values in the formula to find the Simple Interest :

`\dashrightarrow{\small{\tt{Rate = (S.I * 100)/(P * T)}}}`

`\dashrightarrow{\small{\tt{Rate = (1200 * 100)/(6000 * 4)}}}`

`\dashrightarrow{\small{\tt{Rate = \frac{1200 * 1\cancel{00}}{60\cancel{00} * 4}}}}`

`\dashrightarrow{\small{\tt{Rate = (1200 * 1)/(60 * 4)}}}`

`\dashrightarrow{\small{\tt{Rate = (1200)/(240)}}}`

`\dashrightarrow{\small{\tt{Rate = \cancel{(1200)/(240)}}}}`

`\dashrightarrow{\small{\tt{Rate = 5 \: \%}}}`

`\star\underline{\boxed{\frak{\purple{Rate = 5 \: \%}}}}`

Hence, the rate of interest is 5%.

`\rule{300}{1.5}`