Question 11

The simple interest on a sum is $$\frac{5}{9}$$ of the principal for 25 years. What is the rate (in percentage) of interest per annum?

Solution

Let principal amount = Rs. $$9x$$

=> Simple interest = $$\frac{5}{9}\times9x=Rs.$$ $$5x$$

Let rate of interest = $$r\%$$ and time period = 25 years

=> Simple interest = $$\frac{P\times R\times T}{100}$$

=> $$\frac{9x\times r\times25}{100}=5x$$

=> $$\frac{9r}{4}=5$$

=> $$x=\frac{5\times4}{9}=\frac{20}{9}\%$$

=> Ans - (C)

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