Chapter 2: Q. 2.51 (page 126)

Jim lent his sister $$5000$ to help her buy a house. In three years, she paid him the $$ 5000$ , plus $$ 900$ interest. What was the rate of simple interest?

Short Answer

Expert verified

Rate of interest was $6 %$ .

Step by step solution

Step 1. Use the expression for the rate of simple interest,

Interest = $p r t$

Here, $p =$ Principal amount

$r =$ rate of interest

$t =$ Duration of investment

Step 2. Substitute the data given in the question,

Principal amount = $$ 5000$

Interest paid = $$ 900$

Duration =localid="1644443633249" $3$ years

$900 = 5000 \times r \times 3$

localid="1644443582312" $r = \frac{900}{5000 \times 3}$

localid="1644443610947" $r = 0.06$

Therefore, rate of interest =localid="1644443653568" $0.06 \times 100 = 6 %$

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Jim lent his sister $\(5000$ to help her buy a house. In three years, she paid him the $\) 5000$ , plus $$ 900$ interest. What was the rate of simple interest?

Short Answer

Step by step solution

Step 1. Use the expression for the rate of simple interest,

Step 2. Substitute the data given in the question,

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Jim lent his sister \(5000to help her buy a house. In three years, she paid him the \)5000, plus $900 interest. What was the rate of simple interest?

Short Answer

Step by step solution

Step 1. Use the expression for the rate of simple interest,

Step 2. Substitute the data given in the question,

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Math Textbooks

Calculus

Statistics

Theoretical and Mathematical Physics

Probability and Statistics

Pure Maths

Logic and Functions

Study anywhere. Anytime. Across all devices.

Jim lent his sister $\(5000$ to help her buy a house. In three years, she paid him the $\) 5000$ , plus $$ 900$ interest. What was the rate of simple interest?