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The simple interest on a sum of money is 1/4th of the principal and the number of years is equal to rate per cent per annum. The rate per cent is
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- 2.5%
- 5%
- 7.5%
- 10%
- 2.5%
Correct Option: B
Let the principal be p and rate be r% per annum.
According to the question,
∴ SI = | |
100 |
⇒ | = | ||
4 | 100 |
r2 = | = 25 | |
4 |
⇒ r = √25 = 5% per annum
Second method to solve this question :
Here , R = T , n = | ||
5 |
RT = n × 100
R2 = | × 100 | |
4 |
R2 = 25
∴ R = 5%