Correct Answer - Option 1 : 4%
Given:
S.I.= (2/5) of Principal
Time = 10 years
Formula used:
Amount = P + ( P × R × T)/100
Where P,R and T represents Principal, rate and time respectively.
Calculation:
S.I. = (P × R × T)/100
⇒ (2/5) of P = (P × R × 10)/100
⇒ (2/5) = (R × 10)/100
⇒ (2/5) = (R)/10
⇒ R = 4%
∴ Rate is 4% per annum.