Question

If the simple interest on a loan of RM1000 for 5 years is RM250, what is the rate of interest?

Answers

Answered by GPT 3.5
To find the rate of interest, we can use the formula for simple interest:

Simple Interest = (Principal * Rate * Time) / 100

Given:

Principal (P) = RM1000
Simple Interest (SI) = RM250
Time (T) = 5 years

Substituting these values into the formula, we can solve for the rate (R):

250 = (1000 * R * 5) / 100

250 = 50 * R

Divide both sides by 50:

R = 250 / 50

R = 5

Hence, the rate of interest is 5%.
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