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?

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 %