Question

What rate gives $Rs.280$ as interest on a sum of $Rs.56000$ in $2$ years?

Answer 1

Given,

Principal, $P=Rs.56,000$

Time, $T=2$ years

Interest, $R=Rs.280$

The rate of interest $=?$

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

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

$\Rightarrow R=\frac{280\times 100}{56000\times 2}$

$\Rightarrow R=\frac{280}{560\times 2}$

$\Rightarrow R=\frac{1}{4}=0.25\%$

$\therefore$ The rate of interest is $0.25\%$.