Question

The simple interest on a sum of money is half of the sum invested. If the number of years is numerically half the rate per annum, then the rate percentage per annum is:
1. 10%
2. 4%
3. 25 / 4%
4. 8%

Answer 1

Correct Answer - Option 1 : 10%

GIVEN:

The simple interest on a sum of money is half of the sum invested.

FORMULA USED:

SI = (P × R × T)/100

CALCULATION:

Suppose time = R/2, Rate = R

Now,

P/2 = (P × R × R)/(100 × 2)

⇒ R² = 100

⇒ R = 10%

∴ The rate percentage per annum is 10%