Question : A sum of INR 2000 will become INR 2400 in 12 months at some rate of simple interest. Find the rate of interest per annum.
Option 1: 25%
Option 2: 20%
Option 3: 40%
Option 4: 45%
Correct Answer: 20%
Solution :
Amount = INR 2400
Principal,
Time,
Let
Simple interest, SI = 2400 – 2000 = INR 400
Also, Simple interest =
⇒ 400 =
⇒
Hence, the correct answer is 20%.