Q.If 8000 rupees grows to 12000 rupees in 5 years with simple interest, what is the rate of interest? (a) 8% (b) 10% (c) 12% (d) 15%
Answer: B
Let’s assume the principal amount \((p)=8000\) rupees
Time \((t)= 5\) years
Total interest \((I)=(12000-8000)\) rupees = \(4000\) rupees

\(\therefore\) Rate of interest \((r)=\cfrac{100\times I}{pt}\%\)
= \(\cfrac{100\times 4000}{8000\times 5}\%\)
= \(10\%\)
\(\therefore\) Rate of interest is \(10\%\).
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