Problem Analysis
The question asks us to find the simple interest rate given the principal amount, the total amount after a certain period, and the time duration.
- Principal Amount (P) = ₹1,250
- Total Amount (A) = ₹1,550
- Time (T) = 4 years
Calculating Simple Interest
First, calculate the Simple Interest (SI) earned over the 4 years.
The formula for Simple Interest is:
\(SI = A - P\)
Substituting the given values:
\(SI = ₹1,550 - ₹1,250 = ₹300\)
Calculating the Simple Interest Rate
Now, use the simple interest formula to find the rate (R).
The formula is:
\(SI = \frac{P \times R \times T}{100}\)
Rearrange the formula to solve for R:
\(R = \frac{SI \times 100}{P \times T}\)
Substitute the calculated and given values:
\(R = \frac{300 \times 100}{1250 \times 4}\)
\(R = \frac{30000}{5000}\)
\(R = 6\)
Therefore, the simple interest rate is 6%.
Similar Questions
- How long will it take for ₹1,500 to become ₹2,040 at a rate of 8% per annum simple interest?
- What will be the simple interest on ₹1,450 invested for 5 years at a rate of 5% pa?
- A sum of ₹1,250 amounts to ₹1,550 in 4 years. What is the simple interest rate?
- What will be the simple interest on ₹ 1,450 invested for 5 years at a rate of 5% pa?
- A sum of ₹ 2,000, invested at the rate of 8.5% simple interest per annum for 6 years will yield an interest of:
- ₹ $x$ invested at 9% simple interest per annum for 5 years yields the same interest as that on ₹ $y$ invested at 6.25% simple interest per annum for 8 years. Find $x : y$.
The simple interest on ₹1,280 at 5% p.a. in 3 years is:
- Reeta invests a certain sum of money at a certain rate of simple interest per annum, and the interest she gets is equal to one-fourth of the sum invested. If the time period (in years) of investment is equal to the percentage rate of interest per annum, for how many years did Reeta invest the sum of money?
In what duration will a sum of money double itself at 10% per annum rate of simple interest?
A sum of money lent on simple interest becomes \(7\over5\) of itself in 4 years. Find the rate of interest per annum.
Important Questions from Simple Interest
- How long will it take for ₹1,500 to become ₹2,040 at a rate of 8% per annum simple interest?
- Find the simple interest (in ₹) if a sum of ₹400 is borrowed for 5.5 years at 12% per annum rate of interest.
- Find the simple interest (in ₹) if a sum of ₹400 is borrowed for 4.5 years at 8% per annum rate of interest.
Find the simple interest (in ₹) if a sum of ₹400 is borrowed for 5.5 years at 4% per annum rate of interest.
- Find the simple interest (in ₹) on ₹1,200 at an interest rate of 3% per month for 11 months.
