At what rate per annum will a sum of Rs 5000 amount to Rs 6000 in 4 years ?

Options

A. 6 % percent Per annum
B. 4 % perceent Per annum
C. 5 % percent Per annum
D. 4.5 % Percent Per annum

Answer

To find the rate of interest per annum at which a sum of Rs 5000 amounts to Rs 6000 in 4 years, we can use the formula for Simple Interest (SI) and the formula for the amount (A).

### Step 1: Identify the given values
- Principal (P) = Rs 5000
- Amount (A) = Rs 6000
- Time (T) = 4 years

### Step 2: Calculate the Simple Interest (SI)
We can find the Simple Interest by using the formula:
\[ SI = A - P \]
Substituting the values:
\[ SI = 6000 - 5000 = 1000 \]

### Step 3: Use the Simple Interest formula to find the rate
The formula for Simple Interest is:
\[ SI = \frac{P \times R \times T}{100} \]
Where:
- R = Rate of interest per annum

Rearranging the formula to find R:
\[ R = \frac{SI \times 100}{P \times T} \]

### Step 4: Substitute the known values into the formula
Substituting the values we found:
\[ R = \frac{1000 \times 100}{5000 \times 4} \]

### Step 5: Calculate R
Calculating the above expression:
\[ R = \frac{100000}{20000} = 5 \]

### Conclusion
The rate of interest per annum is **5%**.

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