Banking Exam Question - How much interest rate made in 6 months, Rs 25000 to Rs. 26250?

Introduction - Simple interest
Simple interest is a quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the daily interest rate by the principal by the number of days that elapse between payments.

Calculation in English Medium
How much interest rate made in 6 months, Rs 25000 to Rs. 26250?
Here, time (T) = 6 months i.e. 0.5 years Principal (P) = Rs. 25000 Total amount (A) = Rs. 26250 Interest Rate (R) =? Interest Amount (I) = A-P                 = Rs. 26250 - Rs. 25000                 = Rs. 1250
Now Formula, R = I * 100 / PT    = 12500 * 100/25000 * 0.5    = 10%
Therefore Answer Rate (R) = 10%