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?
3%
4%
5%
6%
Explanation:
S.I. = Rs. $\left(15500 - 12500\right)$ = Rs. 3000.
Rate =$ \left(\dfrac{100 \times 3000}{12500 \times 4} \right) $%= 6%