Ms. Neelam deposits an amount of Rs. 16420 at simple interest and obtained 25451 at the end of 5 years. What was the rate of interest per year?
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Answer / Pallavi Singh
To calculate the Rate of Interest (R) per annum, we can use the formula SI = PRT, where SI is Simple Interest, P is Principal, and T is Time in years. We are given that SI = 25451 - 16420 = 8931 and T = 5 years. Solving for R using SI = PRT, we get R = (SI / PT) * 100% = (8931 / (16420 * 5)) * 100% = approximately 7%. Note that the rate of interest may be rounded to a closer value as required.
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