Question

Basha borrowed Rs 8,500 from a bank at a particular rate of simple interest. After 3 years, he paid Rs 11,050 to settle his debt. At what rate of interest he borrowed the money?

Answer 1

Let the rate of interest be r % per annum 

Here Principal P = Rs 8,500 

Time n = 3 years 

Total amount paid = Rs 11,050 

A = P + 1 

= Rs 11,050 

i.e. 8,500 + I = Rs 11,050 

I = Rs 11,050 – Rs 8,500 

= Rs 2,550

Also we know that