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What is the rate of interest which yields an interest of $$Rs.\ 280$$ on a sum of $$Rs.\ 56000$$ for $$2$$ years?
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## QuestionMathsClass 7

What is the rate of interest which yields an interest of $$Rs.\ 280$$ on a sum of $$Rs.\ 56000$$ for $$2$$ years?

Principal, $$P=Rs.\ 56000$$, time, $$t=2$$ years, $$SI =Rs. \ 280$$.
Simple interest is given by $$SI=\frac{P \times r \times t\ }{100}$$
Hence, $$r=\frac{100\times SI}{Pt}$$
Substitute the values.
$$r=\frac{100\times 280}{56000\times 2}=\frac{1}{4}$$
Hence, rate is $$\frac{1}{4}\%$$ per annum.