Question

If the simple interest on a certain sum of money is Rs 256 and the rate of interest per annum equals the number of years, then the rate of interest is?

• A. 13%
• B. 14%
• C. 16%
• D. 12%
• E. None of the above

Answer 1

The correct option is C 16%

Here, I =Rs 256.
Let the principal be Rs 100.
Let the rate of interest per annum be x%.
Then, time (T) =x years.
Therefore, using the formula
$R=\frac{100\times I}{P\times T}$
We have, $x=\frac{100\times 256}{100\times x}\Rightarrow x^2=256orx=16\%$
$\therefore$ Rate of interest per annum is 16%