1.

A principal of RS.500 per month for a period of 4 years . If at time of maturity she gets 28410 ,find the rate of interest.

Answer»

Answer:

Rate of Simple interest  = 0.75 % per month or 9 % per annum.

Step-by-step explanation:

  • He deposits Rs 500 per month for a PERIOD of 4 years.
  • 4 years  = 48 months

  • Amount DEPOSITED = 48 × 500  =  24000 rupees
  • Interest received = 28410 - 24000  = 4410 rupees

Let,

Rate of interest = r%  per month  = 12r% per annum

  • First month Deposit EARN interest for 48 months.
  • Second month for 47 months.
  • and so on...

Simple interest = (P×R×T)/100

4410 =  (500r/100)(48 + 47 + 46 + ....................+  1 )

⇒ 4410 = (5r × 48 × 49)/2

⇒ 4410 = 120 × 49 × r

⇒ r = 4410/(120×49)

⇒ r = 4410/5880

⇒ r = 0.75% per month.

⇒ r = 0.75 ×  12

⇒ r = 9% per annum

∴ Rate of Simple interest  = 0.75 % per month or 9 % per annum


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