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?3%4%5%6%None of these
Question
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?3%4%5%6%None of these
Solution
To find the rate of interest, we can use the formula for simple interest which is I = PRT/100, where I is the interest, P is the principal amount, R is the rate of interest, and T is the time.
Here, the principal amount (P) is Rs. 12,500, the interest (I) is the difference between the final amount and the principal, which is Rs. 15,500 - Rs. 12,500 = Rs. 3,000, and the time (T) is 4 years.
We can substitute these values into the formula and solve for R:
3000 = 12500 * R * 4 / 100
Solving this equation for R gives us:
R = (3000 * 100) / (12500 * 4)
R = 6%
So, the rate of interest is 6%.
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