# What will be the Actual Interest Rate, out the 4 times? If

Ramesh invested an amount that is 10% of Rs. 10000 at simple interest. After 3 years, the amount becomes Rs.2500. Find out the 4 times of actual interest rate.

- 5000%
- 250%
- 200%
- 600%

**Answer: (3) 200 %**

**Explanation:-**

Ramesh invested an amount = 10 % of Rs.10000

= 10000 x 10/100

= Rs.1000

Then, Principal = Rs.1000, Time = 3 years, Amount = Rs.2500

Then, Simple Interest = 2500 – 1000 = Rs.1500

**Formula-**

**Simple Interest = P x R x T/100**

**Where, P = principal , R = rate, & T = time.**

Then, 1500 = 1000 x 3 x R/100

3 = 2 x 3 x R/100

R = 50 %

Four times of actual interest rate = 4 x 50

= 200 %.

Hence, the answer is (3) 200 %.