Question

What rate gives \[Rs.280\] as interest on sum of \[Rs.56000\] in \[2years\]\[?\]

Answer 1

Hint: In the above question, the interest gained after \[2years\] on \[Rs.56000\] is given, now to find the rate% at which the interest is given is found by the following formula:
$R%$=$\dfrac{{{S.I} \times {100}}}{{{p} \times {t}}}$
where \[P\] is the sum/principal of the transaction, \[S.I.\] is the simple interest gained, \[T\] is the time period in years.

Complete step-by-step answer:
Now placing the values in the formula as given in the question we get:
\[P=Rs.56000\], \[T=2years\] and \[S.I.=Rs.280\]
$R%$=$\dfrac{{{S.I} \times {100}}}{{{p} \times {t}}}$
\[=\dfrac{280\times 100}{56000\times 2}\]
\[=\dfrac{28}{56\times 2}\]
\[=0.25%\]

\[\therefore \] The rate of interest for this transaction is given as \[0.25%\].

Note: Students may go wrong while solving the question as the value of the rate is lower , one thinks there might be some problem in the dimensions taken , one must remember that the rate can be any value. Simple interest is based on the principal amount of the loan. Compound interest is based on principal amount as well as the interest.