Question

In 4 years the simple interest on certain sum of money is 9/25 of the principal. The annual rate of interest is

Answer 1

Answer:

The annual interest rate is 9%

Step-by-step explanation:

GIVEN

TIME(T)=4 YEARS

INTEREST(I) =(9/25)×P

TO CALCULATE

RATE OF INTEREST(R)

I=(PRT)/100

9P/25 = 4RP/100

Simplifying the above equation we get R=9%

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Answer 2

Given: In 4 years the simple interest on certain sum of money is 9/25 of the principal.

To find: The annual rate of interest.

Solution:

The simple interest on a particular sum of money can be calculated using the following formula.

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

Here, I is the simple interest, P is the principal amount, R is the rate of interest and T is the time in years.

According to the question, the simple interest is 9/25 times the principal amount.

$I = \frac{9}{25} *P$

Now, the simple interest formula can be written as follows.

$\frac{9}{25} *P = \frac{P*R*4}{100}$

$R = 9$

Therefore, the annual rate of interest is 9%.