If a sum of money amounts to 6 times of itself in 25 years at simple interest, then what is the rate of interest per annum?
Let's assume theĀ principal amountĀ is 'y'.
If a sum of money amounts to 6 times of itself in 25 years at simple interest.
principal amountĀ + interestĀ amount in 25 years = 6y
y +Ā interest amountĀ in 25 years = 6y
interest amountĀ in 25 years = 6y-y = 5y
$$simple\ interest=\frac{principal\times\ rate\times\ time}{100}$$
$$5y=\frac{y\times\ rate\times25}{100}$$
$$1=\frac{rate\times5}{100}$$
rate of interest per annum = 20%
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