Question

The simple interest on a certain principal for 4 years is 8/25 of the principal. Find the rate of interest.

• A. 8%
• B. 5%
• C. 7.5%
• D. 6%

Answer 1

Answer:

A. 8%

S.I = (P × R × T)/100 Let Principal and Simple Interest be 25x and 8x. 8x = [(25x) × 4 × R]/100 ⇒ R = 8%