Q15 of 32 Page 46

A weaver Cooperative society takes a loan of ₹15,000 at the time of buying a power loom. After 5 yrs. the society has to repay ₹22125 for recovering the loan. Let us determine the rate of simple interest in percent per annum.

Interest = Amount – Principle


I = Rs. 22125 – Rs. 15000


I = Rs. 7125


P = Rs. 15000, r = ?, t = 5 yrs and I = Rs. 7125


As we know,





r = 9.5


Hence, rate of simple interest per annum is 9.5%.


More from this chapter

All 32 →