Answer:
The rate of interest is 5%.
Step-by-step explanation:
Here's the required formula to find the rate of interest :
[tex]{\star{\underline{\boxed{\tt{I = \dfrac{PRT}{100}}}}}}[/tex]
- [tex]\purple\star[/tex] I = Interest
- [tex]\purple\star[/tex] P = Principle
- [tex]\purple\star[/tex] R = Rate
- [tex]\purple\star[/tex] T = Time
Substituting all the given values in the formula to find the rate of interest :
[tex]{\implies{\tt{I = \dfrac{PRT}{100}}}}[/tex]
[tex]{\implies{\tt{I = \dfrac{P \times R \times T}{100}}}}[/tex]
[tex]{\implies{\tt{500= \dfrac{2500\times R \times 4}{100}}}}[/tex]
[tex]{\implies{\tt{500= \dfrac{10000R}{100}}}}[/tex]
[tex]{\implies{\tt{R = 500 \times \dfrac{100}{10000}}}}[/tex]
[tex]{\implies{\tt{R = \cancel{500} \times \dfrac{100}{\cancel{10000}}}}}[/tex]
[tex]{\implies{\tt{R =5 \times \dfrac{100}{100}}}}[/tex]
[tex]{\implies{\tt{R =5 \times \dfrac{1 \cancel{00}}{1\cancel{00}}}}}[/tex]
[tex]{\implies{\tt{R =5 \times 1}}}[/tex]
[tex]{\implies{\tt{R =5 \%}}}[/tex]
[tex]\star{\underline{\boxed{\tt{\red{Rate =5 \%}}}}}[/tex]
Hence, the rate of interest is 5%.
[tex]\rule{300}{2.5}[/tex]
