Question

A sum of ₹ 56000 gives ₹ 280 as interest in 2 years. Find the rate of interest. If the interest rate was 11$\%$, then find the interest in two years. [4 MARKS]

Answer 1

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

Given,

Principal = ₹ 56,000

Time = 2 years

Interest = ₹ 280

Let the rate of interest be R % p.a.

$S.I=\frac{P\times R\times T}{100}$

$\Rightarrow R=\frac{I\times 100}{P\times T}$

$\Rightarrow R=\frac{280\times 100}{56000\times 2}$

$\Rightarrow R=\frac{280}{560\times 2}$

$\Rightarrow R=\frac{1}{4}=0.25$

$\therefore$ The rate of interest is 0.25 % .
We have to find the interest if the rate of interest was 11 %,

Interest = $\frac{P\times R\times T}{100}$
On substituting the values we get,
Interest = $\frac{56000\times 11\times 2}{100}$ = ₹ 12320
Hence, the interest in two years if the rate was 11% is ₹ 12320.