Question

If a sum of ` 10,000 amounts to ` 14,000 in 2 years
at simple interest, then the rate of interest is
(1) 16% (2) 20%
(3) 18% (4) 17%

Answer 1

Interest will be 14000-10000=4000
Simple Interest=
$\frac{prt}{100}$
4000=prt/100
4000*100=Prt
400000=10000*X*2
400000=20000X
X=400000/20000=20 percent