A sum of Rs. 125000 amounts to Rs. 15000 in 4 years at the rate of simple interest.

A sum of Rs. 125000 amounts to Rs. 15000 in 4 years at the rate of simple interest. What is the rate of interest?

Quiz

Answer/Solution

5%

Steps/Work

S.I. = (15000 - 12500) = Rs. 2500\
Rate = (100 * 2500) / (12500 * 4) = 5%
ANSWER:C