A sum of Rs 11500 amounts to Rs 12880 in 2 years at the rate of simple interest. What is the rate of interest?
Answer & explanation
Correct answer: option 1
SI = Amount - Principal = 12880 - 11500 = 1380
We know, SI = $\frac{PRT}{100}$
1380 = $\frac{11500 \times R \times 2}{100}$
R = 6% per annum