Multiple choice general knowledge math & puzzles

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

  1. 3

  2. 4

  3. 5

  4. 6

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple Interest = 15500 - 12500 = 3000. Using SI = (P*R*T)/100: 3000 = (12500 * R * 4) / 100. 3000 = 500 * R. R = 3000 / 500 = 6%. Other options like 3, 4, or 5 do not result in the correct interest amount over 4 years.