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Worked Examples · Example 2

Q.At what rate percent per annum will ₹5,000 yield ₹1,500 as simple interest in 5 years?

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✓ Free question

Given: P=5000P = 5000, SI=1500SI = 1500, T=5T = 5 years; find RR.

Method 1 — rearrange the formula.

R=100×SIP×T=100×15005000×5=15000025000=6.R = \dfrac{100 \times SI}{P \times T} = \dfrac{100 \times 1500}{5000 \times 5} = \dfrac{150000}{25000} = 6.

So the rate is 6% per annum.

Method 2 — independent check. At 6% per annum, one year's interest on ₹5,000 is 6% of ₹5,000 = ₹300. Over 5 years that is 300×5=1500300 \times 5 = 1500, which is exactly the interest given — confirming R=6%R = 6\%.

✓Final answer

The required rate of interest is 6% per annum.

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