Question

A sum ofrs. 12,500 amounts to rs. 15,500 in 4 years at the rate of simple interest.what is the rate of interest?

Answer 1

principle = rs 12,500
amount = rs 15,500
so, s.i = amount - principle
= 15,500-12,500
=3,000
time = 4 years
so, rate = s.i x 100 / P x T
= 3000×100 / 12000×4
=25/4 percent
Hope it helps...!!!

Answer 2

P= 12500
A= 15500
I= A-P=3000
T=4 years
R=
$100 \times3000 \div (4 \times 12500)$
=6%per annum