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A sum of money becomes 25/16 times of itself in 40 years at r% of S.I. What is the value of r (approx)?1. 2%2. 3/2%3. 1.5%4. 1.4%

Answer» Correct Answer - Option 4 : 1.4%

Concept used:

R = (I × 100)/(P × T)

A = P + I

Where R = rate of interest, I = interest, P = principal

T = time and A = amount

Calculation:

25/16 times that means if P is 16 than A is 25.

P = 16, A = 25

I = 25 -16 = 9

r = (9 × 100)/(16 × 40)

⇒ r = 90/64 = 45/32 = 1.4% approx



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