Question
At what rate percent per annum, simple interest will be Rs. 3600 amount to Rs. 4734 in 3 ½ years?
Hint:
Find simple interest from total and principal amount given and then find the rate of interest.
The correct answer is: 9%.
Complete step by step solution:
We know the formula for total amount = A = P + SI…(i)
where A is the total amount, P is the principal amount and SI is simple interest.
Here, we have A = 4734 Rs and P = 3600 Rs
On substituting the known values in (i), we get SI = 4734 - 3600 = 1134
So, we have SI = 1134 Rs
We calculate simple interest by the formula,…(ii)
where P is Principal amount, T is number of years and R is rate of interest
Here, we have SI = 1134,P = 3600 ,T = 3.5 and R = ?
On substituting the known values in (ii), we get
Hence the rate of interest R is 9%.
At 9% per annum, simple interest will be Rs 3600 amount to Rs 4734 in 3.5 years.
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