At what rate of simple interest will ₹2,000 become ₹2,520 in 4 years?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 6.5%.
SI = 2520 – 2000 = 520
SI = (P × R × T)/100
⇒ 520 = (2000 × R × 4)/100
⇒ 520 = 80R
⇒ R = 520/80 = 6.5% per annum