A four years NSC certificate was purchased for Rs. 500 with Rs. 1000 being the maturity value. Find the rate of S.I.
24%
22%
16%
25%
Explanation:
P = Rs. 500
SI = Rs.500
T = 4
R = ?
$\text{ R } = \dfrac{100 \times \text{SI}}{\text{PT}} = \dfrac{100 \times 500}{500 \times 4} = \dfrac{100}{4} = 25\%$