Calculating Simple Interest Rate
The problem asks for the simple interest rate (R) given the principal amount (P), the total amount (A) after a certain time (T).
Identify Given Values
- Principal (P): ₹1,250
- Amount (A): ₹1,550
- Time (T): 4 years
Calculate Simple Interest (SI)
Simple Interest is the difference between the final amount and the principal amount.
\(\text{SI} = A - P\)
\(\text{SI} = ₹1,550 - ₹1,250 = ₹300\)
Determine the Interest Rate (R)
Use the formula for Simple Interest:
\(\text{SI} = \frac{P \times R \times T}{100}\)
Rearrange the formula to solve for R:
\(R = \frac{\text{SI} \times 100}{P \times T}\)
Substitute the known values:
\(R = \frac{300 \times 100}{1250 \times 4}\)
\(R = \frac{30000}{5000}\)
\(R = 6\)
The simple interest rate is 6%.
Similar Questions
The simple interest on ₹1,280 at 5% p.a. in 3 years is:
- How long will it take for ₹1,500 to become ₹2,040 at a rate of 8% per annum simple interest?
- 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?
- 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 $x : y$.
- 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 much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per annum of simple interest ?
Nirav and Mehul borrowed Rs.4000 and Rs.5000 respectively for 2.5 years at the rate of x% per annum. Mehul paid Rs 125 more interest than Nirav. Find x.
The difference between the simple interest received from two banks on Rs. 500 for two years is Rs. 2.50. What is the difference between their rates?
P borrowed an amount from Q at a simple interest of 10% p.a. At the end of the year, P paid back Rs 99000 which was 90% of what she owed. How much money did P borrow?
An amount becomes Rs. 3795 in 3 years and Rs. 4537.50 in \(7 \frac{1}{2}\) years on simple interest. Find the rate of interest per annum.
