Mr. Jane donates Rs 1 lakh to a school and the interest on it is to be used for awarding five scholarships of equal value. If the value of each scholarship is Rs 1 500 find the rate of interest.
Let, Principal (P) = Mr. Jane donated amount
P = Rs 100000
Each scholarship value = Rs 1500
Value of 5 scholarships = 5 × 1500 = Rs7500
Interest (I) = value of 5 scholarships
I = Rs 7500
Rate of interest per annum = R %
Time (T) = 1 year
We know that,
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R = 7.5 %
Rate of interest = R = 7.5 %
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