Question

A sum of money becomes 7/5 of itself in 4years at a certain rate of simple interest the rate per anumis

Answer 1

let Principal = 100
amount = 7/5 of 100
= 7/5 × 100
= 7 × 20
= 140
interest = amount - principal
= 140 - 100
= 40
time = 4 years
therefore rate = (interest × 100)/(principal × time)
= (40 × 100)/(100 × 4)
= 10 years