A certain sum of money is lent out at simple interest. If that money becomes ₹24,000 in 2 years and ₹32,000 in 4 years, the annual rate of interest is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 25%.
Simple interest for 1 years = (32000 - 24000)/2 = Rs 4000
Principal = 24000 - 2 × 4000 = 16000
Rate of interest = (4000/16000) × 100 = 25%