Question

A sum becomes five times of itself in 8 years at simple interest. What is the rate of interest per annum?

• A. 37.5%
• B. 25%
• C. 62.5%
• D. 50%

Answer 1

Answer:

D. 50%

Solution: Given: The sum becomes five times itself Time = 8 years Formula Used: Simple interest = (P × R × T)/100 P → Principal R →Rate of interest T →Time Calculation: Let the sum of money be P After 8 years it becomes 5 times. The simple interest = 5P – P = 4P 4P = (P × R × 8)/100 R = 400/8 = 50% ∴The Rate of interest per annum is 50%