Question

Manish borrowed Rs. $75,000$ from his friend and after one year returned Rs. $80,000$ to him. Find the interest.

Answer 1

Manish borrowed $Rs.75000$

So the principal is $Rs.750000$

and after a year he returns $Rs80000$

so the interest that he paid on $Rs.75000$ is $=Rs.(80,000-75,000)$

$=Rs.5000$

Now, the interest $=\frac{Principal\times rate\times time}{100}$

here time $=$ 1 year

$\therefore 5000=\frac{75000\times r\times 1}{100}$

$\Rightarrow \frac{100}{15}=r$

$\Rightarrow r=6\frac{10}{15}=6\frac{2}{3}\%$

[ Note : Since the time period is only one year thereby it does not matter if we have compound interest or simple ineterset as in either of the case the interest will be $I=\frac{Pr}{100}$ ]

Hence, solved.