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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