The rate percent per annum at which 1200 amounts to 1440 in 4 years at simple interest is:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → 5%
At simple interest, the interest is the same every year and is worked out on the principal only: \(\text{SI}=\frac{P\times R\times T}{100}\).
Interest \(=1440-1200=240\)
\(\displaystyle R=\frac{\text{SI}\times100}{P\times T}=\frac{240\times100}{1200\times4}=5\%\)