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Simple Interest

Q1: A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is the rate of interest?

A 3%

B 4%

C 5%

D 6%

E None of these

ANS:D - 6%

S.I. = Rs. (15500 - 12500) = Rs. 3000.

Rate = 100 x 3000 % = 6%
12500 x 4



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