A sum of ₹2,500 becomes ₹3,000 in 4 years at simple interest. What is the rate of interest?
Show answer & explanation
Correct answer: A
Explanation
Principal (P) = ₹2500
Amount = ₹3000
Time (T) = 4 years
Simple Interest (SI) = 3000 - 2500
= ₹500
SI = (P × R × T)/100
500 = (2500 × R × 4)/100
500 = 100R
R = 500/100
R = 5%