A sum of money is lent for 5 years at R% simple interest per annum. If the interest be one-fourth of the money lent, find the value of R.

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Solution

Step: Calculate rate of interest
Given:
T = 5 years
Let the sum be P
$\Rightarrow S . I = \frac{1^{t h}}{4} of P = \frac{P}{4}$
$∵ S . I = \frac{P \times R \times T}{100}$
$\Rightarrow \frac{P}{4} = \frac{P \times R \times 5}{100}$
$\Rightarrow R = \frac{100}{4 \times 5}$
$∴ R = 5 % p . a .$
Hence, the value of R is 5%.

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A sum of money is lent for 5 years at R% simple interest per annum. If the interest be one-fourth of the money lent, find the value of R.

Step: Calculate rate of interest Given: T = 5 years Let the sum be P ⇒S.I=1th4 of P=P4 ∵S.I=P×R×T100 ⇒P4=P×R×5100 ⇒R=1004×5 ∴R=5%p.a. Hence, the value of R is 5%.