Question

A sum of money becomes 5/4 times of itself in 4 years at a certain Simple Interest. The rate per annum is (Need full explanation answer is 1)​

Answer 1

Answer:

6.25% per annum

Explanation:

Let the Principal be P.

Amount (A) = 5/4 P

Simple Interest (SI) = A - P = 1/4 P

Time (T) = 4 years

Let the Rate per annum be R.

SI = PRT/100

1/4 P = P × R × 4 / 100

R = 6.25%