Correct Answer - Option 4 : 16%
Given:
An amount becomes 9 / 5 of itself in 5 years on simple interest
Concept:
Concept used:
R = (S.I. × 100)/(P × T)
S.I. = A – P
Where,
R → Rate
S.I. → Simple interest
P → Principal
T → Time
Calculations:
Let Principal be 5x and Amount be 9x
S.I. = A – P
⇒ 9x – 5x = 4x
R% = (SI × 100)/(P × T)
⇒ (4x × 100)/(5x × 5)
⇒ 16%
∴ The rate of interest is 16%
