John deposited $1200 in a bank account. After 4 years, the total amount in the account is $1400. Find the rate of simple interest per annum.

Correct option is A

Given: Principal = $1200, Total Amount = $1400, Time = 4 years
Formula Used: Simple Interest formula: SI = PRT/100
Solution:

Simple Interest = Total Amount - Principal = 1400 - 1200 = 200
 SI = PRT/100
200 = (1200 * R * 4)/100
R = (200 * 100) / (1200 * 4) = 4.17%