Question

A sum of Rs 46,900 was lent out at simple interest and at the end of 2 years, the total amount was Rs 53,466. Find the rate of interest per year.

Answer 1

Here principal P = Rs 46900 

Time n = 2 years 

Amount A = Rs 53466 

Let r n be the rate of interest per year p 

Interest I = \(\frac{pnr}{100}\)

A = P + I 

53466 = 46900 + \(\frac{46900\,\times\,2\,\times\,r}{100}\)

53466 – 46900 = \(\frac{46900\,\times\,2\,\times\,r}{100}\)

6566 = 469 x 2 x r 

r = \(\frac{6566}{2\,\times\,469}\) % 

= 7 % 

Rate of interest = 7 % per year