Simple Interest
Problem
A sum of money amounts to ₹9800 after 5 years and ₹12005 after 8 years at the same rate of simple interest. Find the rate of interest per annum.
Solution
Let Principal = P, Rate = R%
After 5 years: P + (P × R × 5)/100 = 9800
After 8 years: P + (P × R × 8)/100 = 12005
Subtracting the equations:
(P × R × 3)/100 = 12005 - 9800 = 2205
P × R = 73500
From first equation: P + (73500 × 5)/100 = 9800
P + 3675 = 9800
P = 6125
Rate R = 73500/6125 = 12% per annum