Question : A person borrowed some money at simple interest. After 4 years, he returned $\frac{9}{5}$th of the money to the lender. What was the rate of interest?
Option 1: 25% per annum
Option 2: 10% per annum
Option 3: 15% per annum
Option 4: 20% per annum

Question

Question : A person borrowed some money at simple interest. After 4 years, he returned $\frac{9}{5}$th of the money to the lender. What was the rate of interest?

Option 1: 25% per annum

Option 2: 10% per annum

Option 3: 15% per annum

Option 4: 20% per annum

Team Careers360 · Accepted Answer

Correct Answer: 20% per annum

Solution : Let the amount of money borrowed $=x$
The amount he returned to the lender $= \frac{9}{5}x$
Simple Interest $ = \frac{9}{5}x - x = \frac{4}{5}x$
Time = 4 years
We know, Simple interest $=\frac{ ext{Principal × Rate × Time}}{100} = \frac{x imes ext{Rate} imes 4}{100}$
⇒ $\frac{4}{5} x=\frac{x imes ext{Rate} imes 4}{100}$
$ herefore$ Rate = 20%
Hence, the correct answer is 20%.

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Question : A person borrowed some money at simple interest. After 4 years, he returned 95th of the money to the lender. What was the rate of interest?Option 1: 25% per annumOption 2: 10% per annumOption 3: 15% per annumOption 4: 20% per annum

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Question : A person borrowed some money at simple interest. After 4 years, he returned $\frac{9}{5}$ th of the money to the lender. What was the rate of interest?
Option 1: 25% per annum
Option 2: 10% per annum
Option 3: 15% per annum
Option 4: 20% per annum