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Last updated at March 23, 2023 by Teachoo

Example 21 If Manohar pays an interest of Rs 750 for 2 years on a sum of Rs 4,500, find the rate of interest? I = Rs 750 T = 2 years P = Rs 4500 R = ? Now, I = ππ π/100 750 = (4500 Γ π Γ 2)/100 750 = 45 Γ 2R 45 Γ 2R = 750 R = 750/(45 Γ 2) R = 375/45 R = 125/15 R = 25/3 R = 8 1/3 % p.a So, rate of interest is 8 π/π % p.a