A sum of ₹25,000/- amounts to ₹31,500/- in 4 years at a certain rate of simple interest. What is the rate of interest?

Correct option is A

Given:

​A sum of ₹25,000/- amounts to ₹31,500/- in 4 years at a certain rate of simple interest.

Formula Used:

SI = $$\frac{P\times R \times T}{100}$$ 

Solution: 

Simple interest = 31500 - 25000 =6500 

According to the formula 

6500 = $$\frac{25000 \times R \times 4}{100}$$ 

R = $$\frac{650}{25 \times4}$$  

= 6.5%

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