Q.If the interest on 4000 rupees for 4 years is 1600 rupees, then what is the interest rate? (a) 5% (b) 10% (c) 12\(\cfrac{1}{2}\)% (d) 15%
Answer: B
Principal \((p) = 4000\) rupees
Time \((t) = 4\) years
Total interest amount \((I) = 1600\) rupees
\(\therefore\) Interest rate \((r) = \cfrac{100\times I}{pt}\%\)
\(= \cfrac{100\times 1600}{4000\times 4}\%\)
\(= 10\%\)
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