A sum of ₹16,875 was lent out at simple interest, and at the end of 1 year 8 months, the total amount was ₹18,000. Find the rate of interest per annum.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 4%.
SI = 18000 - 16875 = 1125
Time = 1 year 8 months = 5/3 years
SI = (P × R × T)/100
R = (1125 × 100)/(16875 × 5/3) = 4%