At what rate per annum will Rs. $2{,}500$ produce a simple interest of Rs. $625$ in $5$ years?

At what rate per annum will Rs. $2{,}500$ produce a simple interest of Rs. $625$ in $5$ years?
  1. $4\%$
  2. $5\%$
  3. $6\%$
  4. $8\%$

Solution

$R = \dfrac{100 \cdot \text{SI}}{P \cdot T} = \dfrac{100 \cdot 625}{2500 \cdot 5} = \dfrac{62500}{12500} = 5\%$.

Asked in: IMO

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