Question

The simple interest on a sum of money at the end of four years is 1/5 of its principal. What is the rate of interest per annum?

• A. 4%
• B. 5%
• C. 6%
• D. Data inadequate

Answer 1

The correct option is B 5%

Let sum = x, Then, S.I. =x/5, Time = 4 years.

$\therefore R=(100\times \frac{x}{5}\times \frac{1}{x\times 4})\%=5\%$