Pooja invested a certain amount in a scheme at r% p.a. simple interest for 12.5 years and received interest equal to 3/4 of the amount invested. Find the value of r.
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e 6.
Time = 12.5 years
Simple Interest (SI) = 3/4 of Principal (P)
Rate = r% per annum
SI = (P × R × T) / 100
⇒ (3/4)P = (P × r × 12.5) / 100
⇒ 3/4 = (r × 12.5) / 100
⇒ (3/4) × 100 = r × 12.5 ⇒ 75 = r × 12.5 ⇒ r = 75 / 12.5 ⇒ r = 6