A sum of Rs.12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?

Explanation

Principal amount (P) = Rs. 12,500

Amount after 4 years (A) = Rs. 15,500

Time (T) = 4 years

Interest (I) = A - P = Rs. 15,500 - Rs. 12,500 = Rs. 3,000

Rate of interest (R) = (I / P) × (1 / T) × 100%

= (3,000 / 12,500) × (1 / 4) × 100%

= 6%

Related MCQs

Leave a Reply

Your email address will not be published. Required fields are marked *