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

Answer: Option D

Solution(By Examveda Team)

$$\eqalign{ & {\text{S}}{\text{.I}}{\text{.}} = Rs.\,\left( {15500 - 12500} \right) \cr & \,\,\,\,\,\,\,\,\,\, = Rs.\,3000 \cr & {\text{Rate}} = \left( {\frac{{100 \times 3000}}{{12500 \times 4}}} \right)\% \cr & \,\,\,\,\,\,\,\,\,\,\,\,\,\, = 6\% \cr} $$