Ram borrowed a sum of ₹12000 from bank at simple interest after 2 years he paid ₹5000 to the bank and at the end of 5 years he paid ₹8550 and clear all his dues. Find the rate percent ?
Answer & explanation
Correct answer: option 3
Borrow amount = Rs.12000/-
Total amount paid = 5000 + 8550 = Rs.13550/-
Interest = 13550 - 12000 = Rs.1550/-
Rate of interest = R
Now, ATQ
\(\frac{5000 × R × 2yr}{100}\) + \(\frac{7000 × R × 3yr}{100}\) ⇒ 1550
R = 5%