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  4. If Rs. 125 becomes Rs. 340 in 5 years at simple interest, the rate percentage p.a. is

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Q. If Rs. 125 becomes Rs. 340 in 5 years at simple interest, the rate percentage p.a. is

Simple Interest and Compound Interest

Solution:

Here, $\mathrm{P}=$ Rs. $125 ; \mathrm{A}=$ Rs. $340 ;$ Time $=5$ years
S.I. $=$ Rs. $(340-125)=$ Rs. 215
Let $R$ be the rate of interest per annum
$\therefore \mathrm{R}=\left(\frac{100 \times \text { S.I. }}{\mathrm{P} \times \mathrm{T}}\right) \% =\frac{100 \times 215}{125 \times 5}=\frac{172}{5} \% $
$=34.4 \%$