Aravind deposited ₹18,500 for 5 years at simple interest. After 5 years, he received ₹4,625 as interest. The annual rate of interest was:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 5%.
SI = (P × R × T)/100
⇒ 4625 = (18500 × R × 5)/100
⇒ 4625 = (92500 × R)/100 ⇒ 4625 = 925 R ⇒ R = 4625/925 = 5