A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at simple interest. What is the rate of interest?
Q1. A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at simple interest. What is the rate of interest?
Answer: 6%
Explanation: Simple interest = 15500 − 12500 = Rs. 3000 over 4 years. Rate = (SI × 100)/(P × T) = (3000 × 100)/(12500 × 4) = 6%.