Question

3. A sum of money lent on simple interest, becomes 7/5of itself in 4 years. Find the rate of interest per annum.

Answer 1

Answer:

Let principal=100

Amount=7/5 of 100

=7/5×100

=700/5

=140

Interest= Amount-Principal

=140-100

=40

Time=4 years

rate=(Interest×100)/(Principal×Time)

=(40×100)/(100×4)

=4000/400

=10 years.

So, Rate=10 years. ans.