If a sum is invested at simple interest, then it becomes 5/2 of itself in 5…
2021
If a sum is invested at simple interest, then it becomes 5/2 of itself in 5 years. What is the annual rate of interest?
- A.
40 percent
- B.
35 percent
- C.
25 percent
- D.
30 percent
Attempted by 41 students.
Show answer & explanation
Correct answer: D
Let the principal be P. The amount is 5/2 times P, which is 2.5P.
Simple Interest (SI) = Amount - Principal = 2.5P - P = 1.5P.
Using the SI formula: SI = (P * R * T) / 100
Substitute values: 1.5P = (P * R * 5) / 100
Solve for R: 1.5 = (R * 5) / 100 => 150 = 5R => R = 30%.
Final Answer: Option 4 (30 percent)