Question

A weaver cooperative society takes a loan of ₹ 15,000 at the time of buying a power loom. After 5 years the society has to repay ₹ 22125 for recovering the loan. Let us determine the rate of simple interest in per cent per annum.

December 27, 2023

Answer

Principal = ₹ 15,000

Interest = ₹ 22125 – ₹ 15,000 = ₹ 7125

Time = 5 years

Rate = $\frac{\text { Interest } × 100}{\text { Principal } × \text { Time }}$

= $\frac{7125 × 100}{15000 × 5}$

= $\frac{1425}{150}$

= $\frac{95}{10}$ = 9.5

∴ Rate = 9.5 %

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