Question 60
Sashi took a loan of ₹700 on simple interest for as many years as the rate of interest per annum. If he paid ₹343 as interest at the end of the loan period, what was the rate of interest?
Solution
principal amount = ₹700
Here the rate of interest and time are the same as given in the question.
Let's assume rate of interest = time = y.
simple interest = ₹343
simple interest = $$\frac{principal\ amount\times\ rate\ of\ interest\times time}{100}$$
$$343=\frac{700\times y\times y}{100}$$
$$343=7\times y^2$$
$$49=y^2$$
y = 7
So the rate of interest = y = 7%
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