Question

3. If a sum was 10000 more it would fetch 4000 extra
as simple interest, if it was lent at a certain rate of
interest for two years. Find the annual rate of interest.
(A) 5%
(B) 10% (C). 20% (D) 25%

Answer 1

Answer:

It will be the answer (c). 20%

Step-by-step explanation:

P = 10000

T = 2

R = ?

I = 4000

Then, PTR/100 = I

or, R = I×100/PT

or, R = 4000×100/10000×2

or, R = 20%