Question

# $A$ borrowed $Rs.5000$ from $B$ on simple interest after $8$ years receives $Rs.2000$ more than the amount given to $A$ on loan. Find the rate of interest.

Hint: Interest would be the total amount received, which in this question is given to be $Rs.5000$ and the principal amount would be the extra amount that is received.
Therefore, we are going to use the formula of calculating simple interest where the principal amount is $Rs.5000$, interest would be $Rs.2000$, time is given as $8$ years.
$S.I = \dfrac{{principal \times rate \times time}}{{100}}$
$rate = \dfrac{{2000 \times 100}}{{5000 \times 8}} = 5\%$
The rate of interest in this question is $5\%$ .