If the simple interest for one year on the amount of Rs. 5000 is 200 rs then find the rate of interest?

Options

A. `4%`
B. `8%`
C. `10%`
D. `6%`

Answer

To find the rate of interest, we can use the formula for simple interest. The formula for calculating the rate of interest is given by:

\[ \text{Rate} = \left( \frac{\text{Simple Interest}}{\text{Principal}} \right) \times 100 \]

### Step-by-Step Solution:

1. **Identify the given values:**
- Principal (P) = Rs. 5000
- Simple Interest (SI) for one year = Rs. 200

2. **Substitute the values into the formula:**
\[ \text{Rate} = \left( \frac{200}{5000} \right) \times 100 \]

3. **Calculate the fraction:**
\[ \frac{200}{5000} = 0.04 \]

4. **Multiply by 100 to convert to percentage:**
\[ \text{Rate} = 0.04 \times 100 = 4\% \]

5. **Final Answer:**
The rate of interest is **4% per annum**.