Question

The simple interest on a sum of money is $\frac{2}{25}$ of the principal, and the number of years is equal to 2 times the rate percent per annum. Find the rate percent.2.5%

• A. 1%
• B. 2.5%
• C. 1.5%
• D. 2%

Answer 1

Answer:

D. 2%

Solution:

Given:

$SI=\frac{2}{25}\times{principal}$

Time (T) = 2 × Rate (R)

Formula Used:

SI = (P × R × T) ÷ 100

P = Principal, R = Rate, T = Time

Calculation:

Let the Principal be 50 rupees

⇒$SI=\frac{2}{25}\times{50}=4Rupees$

According to the question

⇒$4=\frac{50\times{R}\times{2R}}{100}$

⇒ R² = 4

⇒ R = 2%

∴ The rate of interest is 2% per annum.