Shortcut:
To find the rate
r =
100 x S.I
/
Pt
P = principal
r = rate
t = time
Here, P = 468.75, S.I = 500 − 468.75 = 31.25, t = 1 year 8 months = 1
8
/
12
=
1
2
/
3
=
5
/
3
Using these values in shortcut, we get:
r =
100 x 31.25
/
468.75 x 5/3
=
100 x 3125 x 3
/
46875 x 5
=
20
/
5
= 4
Hence, the rate is 4%.
