At what rate of interest will a sum of Rs 4,500 amount to Rs 6,525 at simple interest for 5 years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 9%
5 years interest = 6525 - 4500 = 2025
Interest earned for 1st year = 2025/5 = 405
Rate of interest = 405/4500 × 100 = 9%