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?
Q1. 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?
Answer: 6%
Explanation: Interest earned = 15500 − 12500 = Rs. 3000 over 4 years. Rate = (3000 × 100) / (12500 × 4) = 6%.