Question : The simple interest received on a sum for 20 years is $\frac{3}{5}$ of the sum. What is the annual rate of interest?
Option 1: 3%
Option 2: 4%
Option 3: 5%
Option 4: 6%

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Question : The simple interest received on a sum is $\frac{4}{9}$ of the sum. The number of years is equal to the annual rate of interest. What is the annual rate of interest?

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Answer 1

Correct Answer: 3%

Solution : The formula for calculating simple interest is given by:
Simple Interest (SI) = $\frac{P \times R \times T}{100}$ , where
$P$ is the principal amount,
$R$ is the rate of interest per annum, and
$T$ is the time in years.
The simple interest received in 20 years = $\frac{3}{5} P$
⇒ $\frac{3}{5} \times P = \frac{P \times R \times 20}{100}$
⇒ $\frac{3}{5} = \frac{R \times 20}{100}$
⇒ $R = 3$ %
Therefore, the annual rate of interest is $3$ %.
Hence, the correct answer is 3%.

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Question : The simple interest received on a sum for 20 years is 35 of the sum. What is the annual rate of interest?Option 1: 3%Option 2: 4%Option 3: 5%Option 4: 6%

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Question : The simple interest received on a sum for 20 years is $\frac{3}{5}$ of the sum. What is the annual rate of interest?
Option 1: 3%
Option 2: 4%
Option 3: 5%
Option 4: 6%