At what rate of simple interest will a sum of ₹4,500 amount to ₹5,310 after 4 years?
- A4.5%
- B4.0%
- C3.5%
- D5.5%
Solution & Step-by-step Explanation
Given values:
Principal (P) = ₹4,500
Amount (A) = ₹5,310
Time (T) = 4 years
First, calculate the Simple Interest (SI):
SI=A−P=5310−4500=₹810
The formula for Simple Interest is:
SI=
100
P×R×T
Substitute the known values to find the rate (R):
810=
100
4500×R×4
810=45×4×R
810=180×R
R=
180
810
=
18
81
=4.5%
The rate of simple interest is 4.5% per annum.
Principal (P) = ₹4,500
Amount (A) = ₹5,310
Time (T) = 4 years
First, calculate the Simple Interest (SI):
SI=A−P=5310−4500=₹810
The formula for Simple Interest is:
SI=
100
P×R×T
Substitute the known values to find the rate (R):
810=
100
4500×R×4
810=45×4×R
810=180×R
R=
180
810
=
18
81
=4.5%
The rate of simple interest is 4.5% per annum.