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?
papay dey Answered question February 15, 2025
Simple Interest Calculation
Simple interest formula:
Interest = (P × R × Time) / 100
Given values:
P = Rs. 12,500
Amount = Rs. 15,500
Time = 4 years
Interest = Amount – P
= 15,500 – 12,500
= 3,000
Rearrange the formula to solve for R:
R = (Interest × 100) / (P × Time)
= (3000 × 100) / (12,500 × 4)
= 300,000 / 50,000
= 6
The rate of interest is 6%.
papay dey Answered question February 15, 2025
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