Q. Principal Rs. 1000 becomes Rs. 1250 after 4 years on simple interest. What is the annual rate?
β
Correct Answer: (A)
6.25%
Explanation: SI = 1250−1000 = 250. R = SI×100/(P×T) = 250×100/(1000×4) = 25000/4000 = 6.25%. Other options wrong.
Explanation by: Mr. Dubey
SI = 1250−1000 = 250. R = SI×100/(P×T) = 250×100/(1000×4) = 25000/4000 = 6.25%. Other options wrong.