Maths-
General
Easy

Question

Ajay borrowed Rs 4225 from Amar. At the end of four years Ajay had to pay back Rs 6253. What was the rate of interest?

Hint:

From total amount and principal amount, find the simple interest and then find the rate of
interest.

The correct answer is: 12%


    Complete step by step solution:
    We know the formula for total amount = A = P + SI…(i)
    where  is the total amount,  is the principal amount and  is simple interest.
    Money borrowed by Ajay from Amar = P = 4225 Rs
    Money Ajay had to pay after 4 years = A = 6253 Rs
    Here, we have P = 4225 and A = 6253.
    On substituting the known values in (i), we get 6253 = 4225 + SI
    not stretchy rightwards double arrow S I equals 6253 minus 4225 equals R s 2028
    We calculate simple interest by the formula,S I equals fraction numerator P T R over denominator 100 end fraction…(ii)
    where P is Principal amount, T is number of years and R is rate of interest
    Here, we have SI = 2028, P = 4225, T = 4 and R = ?
    On substituting the known values in (i), we get 2028 equals fraction numerator 4225 cross times 4 cross times R over denominator 100 end fraction
    table attributes columnalign right left right left right left right left right left right left columnspacing 0em 2em 0em 2em 0em 2em 0em 2em 0em 2em 0em end attributes row cell not stretchy rightwards double arrow R equals fraction numerator 2028 cross times 100 over denominator 4225 cross times 4 end fraction end cell row cell not stretchy rightwards double arrow R equals 202800 over 16900 equals 12 straight percent sign end cell end table
    Hence the rate of interest R was 12%.

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