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%
S.I. = Rs. (15500 – 12500) = Rs. 3000.
Rate = ( 100 X 3000/12500 X 4 )% = 6%.