A sum of Rs. 12,000 grows to Rs. 13,600 in 4 years under simple interest. What is the annual interest rate?
Correct answer: B. 3.33%
- A. 3.00%
- B. 3.33%
- C. 4.00%
- D. 4.33%
Explanation
The simple interest is Rs. 1,600. Since I = PRT, the rate is 1,600 divided by Rs. 12,000 multiplied by 4, which equals 3.33% per annum. The total amount is not used as the principal in this formula.
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