A sum of money amounts to Rs. 9000 after 5 years and Rs. 12000 after 8 years at the same rate of simple interest. The rate of interest per annum is:
Show answer & explanation
Correct answer: C
Explanation
Amount after 5 years = ₹9,000
Amount after 8 years = ₹12,000
Interest for 3 years = 12,000 − 9,000 = 3,000
Interest for 1 year = 1,000
Interest for 5 years = 5 × 1,000 = 5,000
Principal = 9,000 − 5,000 = 4,000
Rate = (1,000 / 4,000) × 100 = 25%