The interest paid is Rs 10000
The rate of interest is 20%
Step-by-step explanation:
Step 1 :
Amount borrowed by Mr. Satyal = Rs 50000
Amount repaid = Rs 60000
Interest is charged on the principal amount and the amount repaid will be the sum of the interest paid plus the principal amount
Hence the interest paid is 60000 - 50000 = Rs 10000
Step 2:
The rate of interest is calculated as follows :
Divide the interest calculated by the principal amount and is expressed as percentage.
Hence the interest rate = [tex]\frac{10000}{50000}[/tex] × 100 = 20%
Step 3 :
The interest paid is Rs 10000
The interest rate is 20%
