Question

Simple interest on a sum of money is $\frac{1}{25}$ of the principal and the number of years is equal to the rate percent per annum. The rate percent is:

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

Answer 1

The correct option is B

$2\%$

$SI=\frac{PTR}{100}$

$\frac{PTR}{100}=\frac{P}{25}$

$\frac{P.R.R}{100}=\frac{P}{25}$

$R^2=4$

R = 2% p.a