Question

A sum of money is lent for 5 years at R% simple interest per annum if the interest earned be one- fourth of the money lent find the value of R.

Answer 1

Answer:

The rate of interest is 5%.

Step-by-step explanation:

Let the rate of interest be R%.

The formula to calculate simple interest is

$I=\frac{P\times R\times T}{100}$

Where, P is principle amount, R is rate of interest and T is times in years.

It is given that after 5 years the interest earned be one- fourth of the money lent.

$\frac{P}{4}=\frac{P\times R\times 5}{100}$

$\frac{P}{4}=\frac{P\times R}{20}$

$20\times \frac{P}{4}=P\times R$

$5P=P\times R$

$5=R$

Therefore the rate of interest is 5%.