Given that the interest is only earned on principal


Asked by admin @ in Math viewed by 285 People


Given that the interest is only earned on principal, if an investment of rs.1000.00 amount to rs.1440.00 in two years, then what is the rate of interest earned?

Answered by admin @



Amount = Simple Interest + Principal
i.e. Simple Interest = Amount - principal
So. S.I. = 1440 - 1000 = 440
And also Simple Interest = (P*N*R)/100
So 440 = 20 * R
implies R = 22.

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