Question

If the simple interest on a certain sum of money after, $6\frac{1}{4}$ Years is $\frac{3}{8}$ of the principal, then the rate of interest per annum is:

• A. 5%
• B. 6%
• C. 4%
• D. None of these

Answer 1

The correct option is B 6%

Let the sum of money be Rsx.
Then, simple interest =$\frac{3}{8}x$
Also, time =6 \frac{1}{4}years, i.e., \frac{25}{4}years\)
$\therefore Rate\left(R\right)=\frac{100\times I}{P\times T}=\frac{100\times \frac{3x}{8}}{x\times \frac{25}{4}}=\frac{100\times 3}{2\times 25}=6\%$