The simple interest on a sum of money is 1/25 of the principal and the number of years is equal to the rate percent per annum. Find the interest rate per annum?

Question

Question

This question was previously asked in

Maha TAIT Official Paper (Held On 13 Dec 2017 Shift 1)

Answer 1

Given:

T = R

SI/Principal = 1/25

Formula Used:

Simple Interest = \(Simple Interest = \frac{Principal \times Time \times Rate}{100}\)

P = Principal

T = Time

R = Rate of interest

Calculation:

Let assume that SI and Principal are x and 25x

\(x = \frac{25x \times R \times R}{100}\)

R² = 4

R = 2%

The rate of Interest is 2%

The correct option is 2 i.e. 2%