A sum of Rs.2000 gives a simple interest of Rs.100 in 2 years. Find the rate of interest per annum ?
Question
A sum of Rs.2000 gives a simple interest of Rs.100 in 2 years.
Find the rate of interest per annum?
Solution
To find the rate of interest per annum, we can use the formula for simple interest which is:
I = PRT/100
where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time (in years)
In this case, we know that: I = Rs.100 P = Rs.2000 T = 2 years
We need to find R. So, we rearrange the formula to solve for R:
R = I * 100 / (P * T)
Substituting the given values:
R = 100 * 100 / (2000 * 2)
R = 10000 / 4000
R = 2.5
So, the rate of interest per annum is 2.5%.
Similar Questions
Find the rate, if simple interest earned is Rs. 168 on a principal of Rs.1050 for 2 years.
Find the Compound Interest on a sum of Rs.1000 at the rate of 10% per annum for 1.5 years wheninterest is compounded half-yearly
Find the difference between the simple and the compound interest on Rs. 5000 for 2 years at 9% per annum, compoundedannually
What is the compound interest on Rs. 8000 at the rate of 10% per annum compounded annually for 2 years?
At the end of two years what will be the compound interest at the rate of 10% p.a. on an amount of Rs.2000?
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.