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?

A) 6%

B) 8%

C) 10%

D) None of these

We Know that,  S.I = P*R*T/100

                             R = (S.I*100)/P*T

                            S.I = 15500 – 12500 = 3000.

                              R = (3000*100)/12500*4 = 6%

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