Find the rate of simple interest per annum at which a sum of ₹1,200 will amount ₹1,800 in 4 years.
Answer & explanation
Correct answer: option 1
Simple interest of 4 years = 1800 - 1200 = 600
Simple interest of 1 years = 150
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
150 = \(\frac{1200 ×Rate × 1 }{100}\)
Rate = \(\frac{150 × 100 }{1200× 1 }\)
= 12.5%