Find the rate of interest if amount after 2 years on simple interest on a capital of Rs. 1000 is Rs. 1200.

Correct option is C

Given:
Principal (P) = Rs. 1000
Amount (A) = Rs. 1200
Time (T) = 2 years
Formula Used:
Simple Interest (SI) = A – P
​$$\text{SI} = \frac{P \times R \times T}{100} \\$$​​
Solution:
SI = 1200 – 1000 = Rs 200
​$$\text{SI} = \frac{P \times R \times T}{100} \\[10pt]\\200 = \frac{1000 \times R \times 2}{100} \\\Rightarrow 200 = \frac{2000 \times R}{100} \\\Rightarrow 200 = 20 \times R \\\Rightarrow R = \frac{200}{20} \\\Rightarrow R = 10\%$$​​