A sum of Rs. 12,500 becomes Rs. 15,500 in 4 years at the rate of simple interest. Find the rate of interest?

Choose at least one correct answer




Question 9Answer

a.

6%

b.

9%

c.

5%

d.

8%

To find the rate of interest, we can use the formula for simple interest:

\[
\text{Simple Interest (SI)} = \frac{P \times R \times T}{100}
\]

Where:
- \( P \) is the principal amount (Rs. 12,500)
- \( R \) is the rate of interest per annum
- \( T \) is the time period (4 years)
- \( A \) is the amount after time \( T \) (Rs. 15,500)

First, let's calculate the simple interest earned:

\[
\text{SI} = A - P = 15,500 - 12,500 = 3,000 \text{ Rs.}
\]

Now, plug the values into the simple interest formula:

\[
3,000 = \frac{12,500 \times R \times 4}{100}
\]

Solving for \( R \):

\[
3,000 = \frac{50,000 \times R}{100}
\]

\[
3,000 = 500R
\]

\[
R = \frac{3,000}{500} = 6\%
\]

So, the rate of interest is \( 6\% \).

The correct answer is **a. 6%**.

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Would you like any further details or have any questions? Here are five additional related questions:

1. What would be the interest earned if the rate was 8% for the same time period?
2. How does the simple interest formula change if the interest is compounded annually?
3. What is the difference between simple interest and compound interest?
4. How long would it take for Rs. 12,500 to become Rs. 20,000 at a 6% simple interest rate?
5. How do changes in the principal amount affect the interest earned over a fixed time period?

**Tip:** When dealing with simple interest problems, carefully identify the principal, rate, time, and the total amount to avoid mistakes.

Learn how to calculate the rate of interest when Rs. 12,500 becomes Rs. 15,500 in 4 years with a simple interest rate. Step-by-step solution provided.

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