If Manohar pays an interest of Rs 750 for 2 years on a sum ofRs 4,500, find the rate of interest.

Explanation

let rate of interest be x`%`

I=`(P xx R xx T)/100`

`750 = (4500 *R *2)/(100)`

`R = (750 * 100)/(4500 *2) = 750/90 `

`= 75/9 = 25/3 `

interest of 2 yrs `= 750 rs`

interest of 1 year `= 750/2 = 375 rs`

interest = `x% `of principal amount

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