A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?

Question: A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?
[A].

3%

[B].

4%

[C].

5%

[D].

6%

Answer: Option D

Explanation:

S.I. = Rs. (15500 – 12500) = Rs. 3000.

Rate =		100 x 3000	%	= 6%
		12500 x 4

Video Explanation: https://youtu.be/SIcQu1HOmOk