If the simple interest on ₹4,000 for 2 years is ₹480, what is the rate of interest?
Show answer & explanation
Correct answer: B
Explanation
Given:
SI = ₹480, P = ₹4000, T = 2 years
Simple Interest = P × R × T / 100
480 = 4000 × R × 2 / 100
480 = 80R
R = 480/80
R = 6%