A sum of Rs. 12,000 amounts to Rs. 15,000 in 4 years at the rate of simple…

Step-by-Step Solution

To find the rate of simple interest, follow these steps:

1. Calculate the Simple Interest (S.I.):

   • Principal (P) = Rs. 12,000

   • Amount (A) = Rs. 15,000

   • Time (T) = 4 years

   • Simple Interest = Amount - Principal = 15,000 - 12,000 = Rs. 3,000

2. Use the rate formula:

   • The formula for the rate of interest is Rate = (100 * S.I.) / (P * T)

   • Rate = (100 * 3,000) / (12,000 * 4)

3. Perform the calculation:

   • Rate = 300,000 / 48,000

   • Rate = 300 / 48

   • Rate = 6.25%