Question

A sum of money becomes 4/3 of itself in 6 years at a certain rate of simple interest . Find the rate of interest.

Answer 1

Answer:

5.55% per annum

Explanation:

Let the Principal be P.

Amount (A) = 4/3 P

Simple Interest (SI) = A - P = 1/3 P

Time (T) = 6 years

Let the Rate of interest be R.

SI = PRT/100

1/3 P = P × R × 6 / 100

R = 5.55% per annum