At a simple interest rate of 5%, a balance of Rs. 12,500 grows to Rs. 15,500 in four years. What is the interest rate?
A. 3%
B. 4%
C. 5%
D. 6%
Answer:D
At a simple interest rate of 5%, a balance of Rs. 12,500 grows to Rs. 15,500 in four years. What is the interest rate?
A. 3% B. 4% C. 5% D. 6%
Explanation: S.I. = Rs. (15500 - 12500) = Rs. 3000 (explanation).The rate is equal to 100 × 3000/12500 x 4% = 6%.