A sum of Rs. 6250 earns Rs. 976.50 as simple interest in 3 years. Find the approximate rate of interest.
Show answer & explanation
Correct answer: B
Explanation
Given:
P = 6250
SI = 976.50
T = 3 years
According to the formula:
SI = (P × R × T)/100
976.50 = (6250 × R × 3)/100
976.50 = 18750R/100
976.50 = 187.5R
R = 976.50 / 187.5
R = 5.21%