Question

If the simple interest on a certain sum of money for 2 years is one-fifth of the sum, then the rate of interest per annum is?

• A. 9%
• B. 10%
• C. 8%
• D. Insufficient data
• E. None of the above

Answer 1

The correct option is B 10%

We have, T =2 years.
Let the principal be Rs x.
Then, simple interest (I) =Rs $\frac{x}{5}$
Rate of interest (R) $=\frac{100\times I}{P\times T}=\frac{100\times \frac{x}{5}}{x\times 2}$
$=\frac{100}{5\times 2}=10\%p.a$