alleryThe interest on Rs.2500 for 5 years at simple interest is Rs.500. The rate is
A5%
B6%
C8%
D4%
Answer & Solution
Correct answer: D. 4%
1. SI = P * R * T / 100.
2. 500 = 2500 * R * 5 / 100 = 125R.
3. R = 500 / 125.
4. R = 4% per annum.
_Source: ICAI BoS Foundation Paper 3, Ch 4 'Math of Finance', p.4_
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