A person has an initial investment of ₹25000 in an investment plan. After 2, years it has grown ₹30000, then the rate of return on his investment is

20%

The correct answer is Option (3) → 20%

Initial investment = ₹25000

Value after 2 years = ₹30000

Increase in value:

$30000 - 25000 = 5000$

Rate of return:

$\frac{5000}{25000} = 0.20$

$0.20 \times 100 = 20\%$

The rate of return is 20%.