Question

The simple interest earned on a certain sum in 5 years is 30% of the sum. Find the rate of interest.

Answer 1

Let the sum (P) = ₹ 100

S.I. = `30/100 xx ₹ 100` = ₹ 30

Period (T) = 5 years

∴ Rate = `("S.I." xx 100)/("P" xx "T") = (30 xx 100)/(100 xx 5) = 6 %`