The simple interest received on a sum is 25/36 of the sum. The number of years is equal to the annual rate of interest. What is the annual rate of interest?

9.25 percent 10.25 percent 6.62 percent 8.33 percent

8.33 percent

Let Principal (P) = Rs 100 Interest(I) = \(\frac{25}{36}\) × 100 = \(\frac{2500}{36}\) ATQ Rate = Time = a ⇒ Total Interest = Rate × Time ⇒ \(\frac{2500}{36}\) = a × a ⇒ \(\frac{2500}{36}\) = a2 ∴ a = \(\frac{50}{6}\) =8.33 %