Question

At what rate percent per annum will a sum of Rs 4500 amount to Rs 5445
in 3 years?​

Answer 1

7% per annum

Explanation:

Mathematically, we have t he formula for simple interest as;

I = PRT/100

I is the interest which is the difference between the amount deposited and the amount withdrawn

That would be 5445 - 4500 = 945

R is the rate which we want to calculate

T is the time which is 3 years

Thus, we have ;

R = 100I/PT

R = (100 * 945)/(4500 * 3)

R = 7%