If Rs.2000 amounts to Rs.2500 in 2 years at simple interest, what is the rate of interest per annum?

  • Option 1)

    8%

  • Option 2)

    37.5%

  • Option 3)

    22%

  • Option 4)

    12.5%

  • Option 5)

    25%

Answers (1)

I = A-P

= 2500 -2000 = 500

500 /2000 x 100 = 25 %

Interest for 2 years = 25 %

Interest for 1 years = 25% /2 = 12.5 %

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