Maths-
General
Easy
Question
The simple interest on a sum of money at the end of 5 years is of the sum. Find the rate of interest?
Hint:
We have SI to be of the principal amount.
The correct answer is: 16%
Complete step by step solution:
Let the sum of money = P
It is given that times the sum =
We calculate simple interest by the formula,
where P is Principal amount, T is number of years and R is rate of interest
Here, we have , and R = ?
On substituting the known values, we have
On rearranging the above equation, we get
On further simplifications, we get
At 16% rate of interest, the simple interest on a sum of money at the end of 5 years is of sum Itself.
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