Question

Soham bought a sofa for Rs 6500. If he pays an interest of Rs 975 for 3 years, find the rate of interest. [3 MARKS]

Answer 1

Concept : 1 Mark
Application : 1 Mark
Calculation : 1 Mark

Here,

Principal = Rs 6500

Interest = Rs 850

Time = 3 years

Rate of interest = ?

We know that,

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

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

$\Rightarrow R=\frac{975\times 100}{6500\times 3}$

$\Rightarrow R=5$