Question

The simple interest on a sum of money is 3/5 of the principal in 12 years. What is the rate of interest per annum?

• A. 7%
• B. 8%
• C. 6%
• D. 5%

Answer 1

Answer:

D. 5%

$SI=\frac{P\times R \times T}{100}$

$SI=\frac35 P$

$\frac35 P=\frac{P\times R \times 12}{100}$

$\frac35=\frac{12R}{100}$

$100\times \frac35=12R$

$60=12R$

$R=\frac{60}{12}=5$%