a sum of money become 8/5 of its self in 4 year certain rate of interest find the rate of interest
Answers
Answer:
Let the Initial principle amount =P
After 5 years the amount received =(
5
8
)P
As the interest applicable is simple interest, the total interest is Final amount received − Initial principle amount.
Interest amount for 5 years =(
5
8
)P−P
Interest amount for 5 years =(
5
3
)P
With simple interest, interest amount every year is the same.
Thus interest for one year = Interest for 5 years ÷5
Interest for one year =
5
(
5
3
)P
Interest for one year =
25
3
P
Simple Rate of interest per year =
Initial Principle amount
Amount of Interest received per year
×100%
∴ Rate of interest per year =((
25
3
)P÷P)×100%
∴ simple rate of interest =
25
3
×100%
∴ Simple Rate of interest =12%
Step-by-step explanation: