Question

A sum of money is lent for 5 years at R% simple interest per annum. If the interest earned be one-fourth of the money lent, find the value of R.

Answer 1

Let the sum (P) = ₹ 100

∴ S.I. = `1/4 xx ₹ 100 = ₹ 25`

Period (T) = 5 years

∴ Rate % = `("S.I." xx 100)/("P" xx "T")`

`(25 xx 100)/(100 xx 5) = 5 %`