1.

The simple interest on a sum after 4 years is \(\frac{1}{5}\) of the sum. The rate of interest per annum is:1. 4%2. 6%3. 5%4. 8%

Answer» Correct Answer - Option 3 : 5%

Given:

SI = 1/5 × P

T = 4 yr

Formula used:

SI = P × R% × T

Calculation:

SI = P × R% × T

⇒ 1/5 × P = P × R/100 × 4

⇒ 20/4 = R

⇒ R = 5%

∴ The rate of interest per annum is 5%.



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