A man lends a certain sum of money and gets an interest

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A man lends a certain sum of money and gets an interest equal to 1/16 th of the principal. The time for which money was lent is equal to the rate of interest. Find the rate of interest per annum.

As we know that ,

SI =	PRT
	100

Given : SI =	P	and T = R
	16

So, on substitution we get

P	=	P × R × R
16	=	100

R² =	100
	16

⇒ R =	10	% =	5	% = 2	1	%
	4		2		2