Question 52

A sum becomes five times of itself in 8 years at simple interest. What is the rate of interest per annum?

Solution

Let initial sum = Rs. $$x$$, thus amount after 8 years = Rs. $$5x$$

=> Simple interest = $$\frac{P\times r\times t}{100}=4x$$

=> $$\frac{x\times r\times8}{100}=4x$$

=> $$r=\frac{400}{8}=50\%$$

=> Ans - (D)

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