Question

Ratio of principle and year y amount is 16:17.the rate of interest per annum is

Answer 1

Given that,

The ratio of principle and amount is 16:17

Hence, the principle and amount will be 16x,17x

Thus,

Interest=17x-16x=x

Now, we want the rate of interest per annum. So,

The rate of interest= interest/principle*100

= x/16x*100

=6.25%

Therefore, the rate of interest per annum is 6.25%