SIMPLE INTEREST A1

Rayan deposited the amount of 6,000/= in a bank for 5 years and got a profit of 1200/=. Find the interest rate?

Solution

I = 1200/=, P = 6,000/=, T = 5 years, R = ?

I  = PRT

      100

1200  = 6,000 x R x 5

                      100

1200  = 6,000 x R x 5

                      100

1200  = 60 x R x 5

                      

1200  = 300R

           

⁴1200  = 300R

   300       300

Hence the interest rate was  4%