If the simple interest for 9 years be equal to 45% of the principal, then the rate of interest per annum is equal to:
Answer & explanation
Correct answer: option 1
Let principal = 100% & Simple Interest = 45%
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
45 = \(\frac{100 ×Rate × 9 }{100}\)
Rate = 5%