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 ?

Answer : A. 4 %…

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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