Question 11

The simple interest on a sum of money is $$\frac{16}{25}$$ of the principal. The number of years is equal to the rate of interest per annum. What is the rate (in percentage) of interest per annum?

Solution

Let sum of money invested = Rs. $$100x$$

=> Simple interest = $$\frac{16}{25}\times100x=Rs.$$ $$64x$$

Let rate of interest = time period = $$x$$

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

=> $$\frac{100x\times x\times x}{100}=64x$$

=> $$x^2=64$$

=> $$x=\sqrt{64}=8\%$$

=> Ans - (C)

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