If Rs $6000$ earns simple interest of Rs $1200$ in $4$ years, the annual rate is:

Question

If Rs $6000$ earns simple interest of Rs $1200$ in $4$ years, the annual rate is:

Option A

4%

Option B — Correct answer

5%

Correct choice.

Option C

6%

Option D

8%

Explanation

Using $1200=\frac{6000\times R\times4}{100}$ gives $R=5\%$.

Chapter Mock 5: Simple Interest and Compound Interest