Ram borrowed a sum of ₹5000 from bank at simple interest after 3 years he paid ₹300 to the bank and at the end of 5 years he paid ₹3300 and clear all his dues. Find the rate percent ?
Answer & explanation
Correct answer: option 3
Borrow amount = Rs.5000/-
Total amount paid = 3000 + 3300 = Rs.6300/-
Interest = 6300 - 5000 = Rs.1300/-
Rate of interest = R
Now, ATQ
\(\frac{3000 × R × 3yr}{100}\) + \(\frac{2000 × R × 2yr}{100}\) ⇒ 1300
R=10%