Question

The simple interest on a certain sum of money in 4 years is 7/25 of the principal. Find the rate of interest per annum

Answer 1

Answer:

Simple Interest=

100

P×R×N

where P is principal, R is rate of interest per annum and N is number of years

simple interest on a certain sum of money is

25

4

th of the sum

∴

25

4P

=

100

P×R×R

as R=N

∴16=R

2

∴R=4