Discussion

A sum of Rs. 12500 amounts to Rs. 15500 in 4 years at simple interest. What is the rate of interest?

Answer: D

\[ \text{SI} = \frac{P \times R \times T}{100} \]

\[ \text{SI} = 15500 - 12500 = \text{Rs. } 3000 \]

\[ 3000 = \frac{12500 \times R \times 4}{100} = 500R \]

\[ R = 6\% \]

The interest is 24% of the principal over four years, which is 6% a year.

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