Question

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

Answer 1

Answer:

The rate of interest is 5%.

Step-by-step explanation:

Given :

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

To Find :

• ✧ Rate of Interest

Using Formula :

$\star{\small{\underline{\boxed{\sf{\red{R = \dfrac{S.I \times 100}{P \times T}}}}}}}$

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

Solution :

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

$\dashrightarrow{\small{\tt{Rate = \dfrac{S.I \times 100}{P \times T}}}}$

$\dashrightarrow{\small{\tt{Rate = \dfrac{1200 \times 100}{6000 \times 4}}}}$

$\dashrightarrow{\small{\tt{Rate = \dfrac{1200 \times 1\cancel{00}}{60\cancel{00} \times 4}}}}$

$\dashrightarrow{\small{\tt{Rate = \dfrac{1200 \times 1}{60 \times 4}}}}$

$\dashrightarrow{\small{\tt{Rate = \dfrac{1200}{240}}}}$

$\dashrightarrow{\small{\tt{Rate = \cancel{\dfrac{1200}{240}}}}}$

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

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

Hence, the rate of interest is 5%.

$\rule{300}{1.5}$