A sum of Rs. 6500 earns Rs. 1602.00 as simple interest in 4 years. Find the approximate rate of interest.
Show answer & explanation
Correct answer: B
Explanation
Given:
P = 6500
SI = 1602
T = 4 years
According to the formula:
SI = (P × R × T)/100
1602 = (6500 × R × 4)/100
1602 = 26000R/100
1602 = 260R
R = 1602 / 260
R = 6.16%