Question

Choose the correct answer from the alternatives given.
The simple interest on a sum of money is $\frac{1}{16}$ of the sum. If the number of years is numerically equal to the rate percent per annum, then the rate percent per annum is

• A. 3 $\frac{1}{3}$
• B. 6 $\frac{2}{3}$
• C. 2 $\frac{1}{2}$
• D. 7 $\frac{1}{2}$

Answer 1

The correct option is C 2 $\frac{1}{2}$

Let the principal be x

SI = x/16

Let Rate = r%

Time = r years (since time is same as rate)

SI = (P.R.T)/100

$\frac{x}{16}=\frac{x\times r\times r}{100}$

r² = 100/16

$r=\sqrt{\frac{100}{16}}$

r = 10/4 %
r = 5/2 = $2\frac{1}{2}$ %