Question

At what rate per cent per annum will ₹ 630 produce an interest of ₹126 in 4 years?

Answer 1

Step: Calculate the rate of interst

Given:

Simple interest (SI) = Rs. 126

Time (T) = 4 years

Principal (P) = Rs. 630

$\text{Simple interest (SI)}=\frac{P\times R\times T}{100}$

$126=\frac{630\times R\times 4}{100}$

$126=\frac{63\times R\times 4}{10}$

$R=\frac{126\times 10}{63\times 4}$

$R=5\%\text{per annum}$

Hence, the rate is $5\%$ per annum.