Question

find is a simple interest for a loan where birr 6,000 borrowed and the amount owned after 5 months this is for 7,500 what is the rate​

Answer 1

To find the rate of interest, we can use the simple interest formula:

Interest = Principal * Rate * Time

In this case, the principal (P) is 6,000 birr, the time (T) is 5 months, and the amount owed (A) is 7,500 birr. We need to find the rate (R).

Interest = Amount Owed - Principal

Let's substitute the values into the formula:

Interest = 7,500 - 6,000
Interest = 1,500 birr

Now we can rearrange the formula to solve for the rate:

Rate = Interest / (Principal * Time)

Rate = 1,500 / (6,000 * 5/12)
Rate = 1,500 / (30,000/12)
Rate = 1,500 * 12 / 30,000
Rate = 0.6 or 0.6 * 100 = 60%

Therefore, the rate of interest for the loan is 60%.