Home » Aptitude » Simple interest » Question
  1. The simple interest on a sum of money is 1/16 of the principal and the number of years is equal to the rate per cent per annum. The rate per annum is
    The simple interest on a sum of money is
    1. 1
      1
      %
      2
    2. 2
      1
      %
      2
    3. 3
      1
      %
      2
    4. 4
      1
      %
      2
Correct Option: B

Let the annual rate of interest = r%
Time = r years
Let the principal be p .
∴ Interest = p/16
According to the question,

p
=
p × r × r
16100

[∵ r = t]
⇒ 16r2 = 100
⇒ r2 =
100
16

⇒ r2 =
25
4

∴ r = √25 / 4 =
5
2

r = 2
1
%
2

Second method to solve this question :
Here, n =
1
, R = T
16

RT = n × 100
R2 =
100
16

∴ R = √100 / 16
⇒ R =
10
4

R = 2
1
%
2



Your comments will be displayed only after manual approval.