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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%

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

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