Question

A sum of Rs 56000 gives Rs 280 as interest in 2 years. Find the rate of interest. [4 MARKS]

Answer 1

Concept : 1 Mark
Application : 1 Mark
Calculation : 2 Marks

Given,

Principal = Rs 56,000

Time = 2 years

Interest = Rs 280

Rate of interest = ?

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

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

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

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

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

$\therefore$ The rate of interest is $0.25\%$.