Question 40

The simple interest on a sum for 5 years is two-fifth of the sum. The rate of interest per annum is

Solution

Let sum of money = Rs. $$5x$$

=> Simple interest = Rs. $$\frac{2}{5} \times 5x$$ = Rs. $$2x$$

Time period = 5 years

Let rate of interest = $$r\%$$

=> S.I. = $$\frac{P \times r \times t}{100}$$

=> $$\frac{5x \times r \times 5}{100}=2x$$

=> $$25r=100 \times 2=200$$

=> $$r=\frac{200}{25}=8\%$$

=> Ans - (B)

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