A bank offers a savings scheme where ₹10,000 invested at simple interest grows to ₹12,500 in 5 years.
Show answer & explanation
Correct answer: B
Explanation
Principal (P) = ₹10,000
Amount (A) = ₹12,500
Time (T) = 5 years
Simple Interest (SI) = ₹12,500 − ₹10,000 = ₹2,500
Simple Interest -
2500 = (10000 × R × 5)/100
2500 = 500R
R = 5%