Question

A certain sum of amounts to 5/4 of itself in 5years .Find the rate percent per annum

Answer 1

Answer:

Let the principle be rs x

Time is given as 5 years.

So, amount becomes 5x/4

Now ,

We know that

Si = amount - p

SI =5x/4 - x = 1x/4

Now we also know that

Si = p x r x t / 100

So as per given values.

=> x x r x 5/100 = 1x/ 5

=> 5x x r = 1x x 100/ 5

=> r = 20x/5x

=> 4%

So, the rate of interest is equal to 4 percent per annum.