The rate of interest per annum at which the total simple

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The rate of interest per annum at which the total simple interest of a certain capital for 1 year is equal to the total simple interest of the same capital at the rate of 5% per annum for 2 years, is

1. 5 %
  2
2. 10%
3. 25%
4. 12.5%

Correct Option: B

Let the capital be P .
We know that ,

SI =	P × R × T
	100

According to question ,

P × r × 1	=	P × 5 × 2
100	=	100

[ ∵ Capital is same in both cases]
⇒ r × 1 = 5 × 2
⇒ r = 10%