A borrowed Rs.5000 from B at simple interest. then what will be the rate of interest per annum if B received Rs. 500 as interest from A:
Here, P = Rs. 5000, I = Rs. 500, T = 5 years.
Therefore, using the formula
R = 100 x SI/ P x T
We have, rate of interest (R) = 100 x 500/5000 x 5
= 2% p.a.
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