If the simple interest on a certain sum of money is 4/25 of the sum and the rate percent equals the number years, then the rate of interest per annum is ?



If the simple interest on a certain sum of money is 4/25 of the sum and the rate percent equals the number years, then the rate of interest per annum is ?

A. 4 %

B. 5 %

C. 8 %

D. 10 %

Answer : A. 4 %...


Explanation :

    Let the principal be Rs.x, then the simple interest (I) = (4 / 25 )x.
    The rate of interest per annum be r% then time (T) = r years
    R = ( 100 * I ) / ( P * T )
    r = ( 100 * ( 4/25 ) x ) / ( x * r )
    r2 = 400 / 25
    r = 20 / 5
    = 4 %


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