Question

Find the rate when:
Principal $=Rs.5200$, $SI=Rs.975$ and Time $=2\frac{1}{2}$ years.

Answer 1

Given: Principal, $P=Rs.5200$ ,

Simple interest, $S.I.=Rs.975$

Time, $T=2\frac{1}{2}$ years $=\frac{5}{2}$ years

We know that the simple interest is given by the formula

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

$R=\frac{S.I\times 100}{P\times T}=\frac{975\times 100}{5200\times \frac{5}{2}}$

$=\frac{975\times 2}{52\times 5}$

$=\frac{195}{26}=7.5\%$