question_answer

What is the rate of interest which gives an interest of Rs 280 on a sum of Rs 56,000 for 2 years?

Answer:

Principal = Rs 56,000 Time = 2 years Interest = Rs 280p.a. Let rate of interest be x \[\therefore \]      \[R=\frac{100\times I}{P\times T}\] \[x=\frac{100\times 280}{56000\times 2}\] \[x=\frac{1}{4}\] x = 0.25% Hence, rate of interest for 2 years = 0.25%