Question

If the simple interest on a sum of money is 2/5 of the principal in 10 years,what will be the rate of interest p.a?

Answer 1

Solution:-

Let the sum be 100

Simple interest on sum becomes 2/5 times of amount=100/5*2=40

As the period= 10 years the simple interest per year=40/10=4 per 100

Therefore simple interest=4%