A certain amount grows to ₹6000 in 2 years and ₹7200 in 4 years. Find the interest rate (simple interest).
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 12.5%.
Interest for 2 additional years = 7200 - 6000 = 1200
Interest per year = 1200/2 = 600
Amount after 2 years = 6000
Principal = 6000 - 1200 = 4800
Rate = (SI × 100)/(P × T)
= (1200 × 100)/(4800 × 2)
= 12.5%