If the simple interest on a certain sum of money after 3 1⁄8 years is 1⁄4 of the principal, what...
If the simple interest on a certain sum of money after 3 1⁄8 years is 1⁄4 of the principal, what is the rate of interest per annum?
Answer/Solution
8%
Steps/Work
Explanation :
Let the the sum of money(P) be Rs.x
Time(T) = 3 1⁄8 Years = 25⁄8 Years
Simple interest (SI) = x⁄4
Rate of interest per annum(R) = 100×SI/PT=100×x/4/x × 25/8
=100× x ×8/4× x × 25
=8%
Answer : Option C
Let the the sum of money(P) be Rs.x
Time(T) = 3 1⁄8 Years = 25⁄8 Years
Simple interest (SI) = x⁄4
Rate of interest per annum(R) = 100×SI/PT=100×x/4/x × 25/8
=100× x ×8/4× x × 25
=8%
Answer : Option C