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The interest earned on \rupee25000\rupee 25000 in 5 years at simple interest is \rupee1500\rupee 1500. What is the rate of interest?

Solution

Correct Option: 2

Using SI=P×R×T100SI = \frac{P \times R \times T}{100}: 1500=25000×R×51001500 = \frac{25000 \times R \times 5}{100}, so 1500=1250R1500 = 1250R, giving R=1.2%R = 1.2\%.

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