Question

if a person give Rs.300 as interest on a sum of Rs.2000 in 2 years, then what should be rate?

Answer 1

According to the simple interest formula,
\[I = P r T\]
Where P is the Principal, r is the rate, and T is the Time.

So, If I=300, then \[I= 300 = 2000 \times r \times 2\]
This equation can be solved for r, \[300 = 4000 r\]
\[\frac{ 300 }{ 4000 }\] Or 3/40

Therefore the rate is 3/40 Or 7.5%