Given: The principal of loan is Rs 5000. The time for the loan is 3 years. The amount paid after 3 years is Rs 6200. Formula Used: SI = P× R × T/100 Where P → Principal R → Rate of interest T → Time period SI = Amount – Principal Calculation: Let the rate of interest be R. The amount paid after 3 years is Rs 6200. The principal of loan is Rs 5000. SI = Amount – Principal ⇒ 6200 – 5000 ⇒ 1200 SI = P× R × T/100 ⇒ 1200 = 5000 × R × 3/100 ⇒ 1200 = 50 × R × 3 ⇒ R = 1200/150 ⇒ R = 8% ∴ The rate of interest is 8%.