Question

Mr Satyal borrowed Rs 50000 and after ane year she returned the loan by paying 60000. What is the intrest paid and what is the rate of the interest?​

Answer 1

The interest paid is Rs 10000

The rate of interest  is  20%

Step-by-step explanation:

Step 1 :

Amount  borrowed by Mr. Satyal = Rs 50000

Amount repaid  = Rs 60000

Interest is charged on the principal amount and the amount repaid will be the sum of the interest paid plus the principal amount

Hence the interest paid is 60000 - 50000 = Rs 10000

Step 2:

The rate of interest is  calculated as follows :

Divide the interest calculated by the principal amount and is expressed as percentage.

Hence the interest rate  = $\frac{10000}{50000}$ × 100 = 20%

Step 3 :

The interest paid is Rs 10000

The interest rate  is  20%