A man takes loan 15,000 Rs. After 5 years he repay 22,125 Rs
for loan. Find rate of interest.​

1 thought on “A man takes loan 15,000 Rs. After 5 years he repay 22,125 Rs<br />for loan. Find rate of interest.​”

1. Given:

   • Principal = Rs. 15000
   • Amount = Rs. 22125
   • Time = 5 years

   What To Find:

   We have to find –

   • The rate of the interest.

   How To Find:

   To find we have to –

   • First, find the simple interest using a precise formula.
   • Next, find the rate of interest using a definite formula.

   Solution:

   • Finding the simple interest.

   We know that –

   → Amount = Principal + Simple Interest

   Substitute the values,

   → 22125 = 15000 + Simple Interest

   Take 15000 to LHS,

   → 22125 – 15000 = Simple Interest

   Subtract the values in LHS,

   → Rs. 7125 = Simple Interest

   • Finding the rate of interest.

   We know that –

   → Simple Interest = (Principal × Rate × Time) ÷ 100

   Substitute the values,

   → 7125 = (15000 × Rate × 5) ÷ 100

   Multiply 15000 with 5,

   → 7125 = (75000 × Rate) ÷ 100

   Cancel the zeros,

   → 7125 = 750 × Rate

   Take 750 to LHS,

   → 7125 ÷ 750 = Rate

   Divide 7125 by 750,

   → 9.5 % = Rate

   Final Answer:

   ∴ Thus, the rate of interest is 9.5 %

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