Question

if the simple interest on a certain sum of money of 2 year be one fifth of the sum find the rate of interest per annum

Answer 1

Let the principal be ₹x.

Time = 2 years

Interest = 1/ 5 of ₹ x

= ₹x /5

Rate = 100 × interest / principal × time

= 100 × (₹x / 5) / ₹x × 2

= 10

Ans. = The rate if interest is 10% per annum.

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