Question

Simple interest on a sum of money fetches an interest equal to it's one fifth after 8 year's. What is the rate of interest percent per annum?

Answer 1

Answer:

The rate of interest is 2.5%

Step-by-step explanation:

$\text{Formula used:}$

$\text{simple interest=}\frac{P\:n\:r}{100}$

$\text{Let the principal be P}$

$\text{Given:}$

$\text{simple interest=}\frac{1}{5}*P$

$\frac{P\:n\:r}{100}=\frac{1}{5}*P$

$\implies\:\frac{8*r}{100}=\frac{1}{5}$

$\implies\:8r=\frac{100}{5}$

$\implies\:8r=20$

$\implies\:\:$r=2.5%