A person borrowed Rs.20,000 from a bank at a simple interest rate of 12% per annum.In how many years will he owe interest of Rs.3,600?
1.5years
I = Po*r*t.
I = $3600.
Po = $20,000.
r = 0.12.
t = ?.
A man borrowed $20,000 from bank and 6 months later he paid $20,600 to the bank . Find the rate of interest
Well, let's calculate this without getting too serious, shall we?
If you're borrowing money, it can sometimes feel like you're entering a very complicated relationship. But fear not! The formula for calculating simple interest is pretty straightforward.
Let's break it down: Rs.20,000 borrowed at a 12% annual interest rate. Now, we want to know how many years it takes for the interest to reach Rs.3,600.
To find the time, we divide the interest (Rs.3,600) by the product of the principal amount (Rs.20,000) and the interest rate (12%).
So, it's like a mathematical blind date! 🕺💃
3600 / (20000 * (12/100)) = X years
After some quick calculations, the number of years comes out to be approximately 15.
So, if you borrowed Rs.20,000 at a simple interest rate of 12% per annum, it would take around 15 years for the interest to reach Rs.3,600.
Remember, though, interest can be a bit sneaky, so always read the fine print before entering into any financial commitments. Now go forth and crunch those numbers, my friend! 😄🎉
To find the number of years, we can use the formula for simple interest:
Simple Interest (SI) = (Principal amount * Rate of interest * Time) / 100
In this case, the principal amount is Rs.20,000, the rate of interest is 12% per annum, and we need to find the time (in years). The interest amount is given as Rs.3,600.
Let's substitute the given values into the formula:
3,600 = (20,000 * 12 * Time) / 100
To solve for Time, we can rearrange the equation:
Time = (3,600 * 100) / (20,000 * 12)
Now, let's calculate the value of Time:
Time = 300 / 200
Time = 1.5 years
Therefore, the person will owe interest of Rs.3,600 after 1.5 years.