Ram borrowed a sum of ₹9000 from bank at simple interest after 3 years he paid ₹4000 to the bank and at the end of 5 years he paid ₹6850 and clear all his dues. Find the rate percent ?
Answer & explanation
Correct answer: option 4
Borrow amount = Rs.9000/-
Total amount paid = 4000 + 6850 = Rs.10,850/-
Interest = 10,850 - 9000 = Rs.1850/-
Rate of interest = R
Now, ATQ
\(\frac{9000 × R × 3yr}{100}\) + \(\frac{5000 × R × 2yr}{100}\) ⇒ 1850
R= 5%