Ram borrowed a sum of ₹7000 from bank at simple interest after 3 years he paid ₹3000 to the bank and at the end of 5 years he paid ₹5450 and clear all his dues. Find the rate percent ?
Answer & explanation
Correct answer: option 3
Borrow amount = Rs.7000/-
Total amount paid = 3000 + 5450 = Rs.8450/-
Interest = 8450 - 7000 = Rs.1450/-
Rate of interest = R
Now, ATQ
\(\frac{7000 × R × 3yr}{100}\) + \(\frac{4000 × R × 2yr}{100}\) ⇒ 1450
R= 5%