Bihar Police Constable Model Paper 5

Given:
The principal of loan is Rs 5000.
The time for the loan is 3 years.
The amount paid after 3 years is Rs 6200.
Formula Used:
SI = P× R × T/100
Where P → Principal
R → Rate of interest
T → Time period
SI = Amount – Principal
Calculation:
Let the rate of interest be R.
The amount paid after 3 years is Rs 6200.
The principal of loan is Rs 5000.
SI = Amount – Principal
⇒ 6200 – 5000
⇒ 1200
SI = P× R × T/100
⇒ 1200 = 5000 × R × 3/100
⇒ 1200 = 50 × R × 3
⇒ R = 1200/150
⇒ R = 8%
∴ The rate of interest is 8%.