Question

A man took a loan of rs 12,000 with simple interest for as many years as the rate of interest per year.If he paid rs 3,000 as interest at the end of loan period,what was the rate of interest?​

Answer 1

The answer is 5%

Simple interest is the interest charged on a credit taken.

Simple interest is given by S.I=PRT/100

Substituting the values, we get

3000=12000×t×t/100

t²=25

t=5(ignoring negative value)

So the rate of interest is 5%

What is the rate of interest?

• The rate of inetrest is the amount charged by the lender to the borrower over the principal amount.
• It is paid in addition to the principal amount.

To learn more about the rate of interest visit:

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