Question

If the simple interest on a certain sum of money for 5 years b 1 upon 5 of than
sum that find the rate of interest per annum

Answer 1

Answer:

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Answer 2

If the simple interest is 1/5 th of the principal for 5 years, then the rate of interest per annum is 4%.

Step-by-step explanation:

Let the sum of money be denoted as "P" and the rate of interest be denoted as "R"%.

Time period, T = 5 years

Simple interest, S.I. = $\frac{1}{5} * P$

Formula required:

S.I. = $\frac{PRT}{100}$

Now, substituting the given values in the above formula, we get

$\frac{1}{5} * P$ = $\frac{P * R * 5}{100}$

⇒ R =  $\frac{100}{5 * 5}$

⇒ R = 4%

Thus, the rate of interest is 4% p.a.

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