Question

Find rate of simple interest if on certain principal for 20 years. If interest is equal to the borrowed amount.

Answer 1

Dear student
$$\begin{gathered} \mathrm{Given}\mathrm{Interest},\mathrm{I}=\mathrm{Borrowed}\mathrm{amount},\mathrm{P} \\ \mathrm{So},\mathrm{I}=\frac{\mathrm{PRT}}{100} \\ \Rightarrow \mathrm{I}=\frac{\mathrm{I}\times \mathrm{R}\times 20}{100} \\ \Rightarrow \mathrm{R}=5 \\ \mathrm{So},\mathrm{rate}\mathrm{of}\mathrm{interest}=5\%\mathrm{p}.\mathrm{a} \end{gathered}$$
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