A certain sum of money amounts to $\frac{3}{2}$ of itself in 2 years applying simple interest. Find the rate of simple interest per annum .

25%

Given :-

A certain sum of money amounts to  \(\frac{3 }{2 }\) of itself.

Let Principal = 2 , Then Amount = 3

We know ,

Amount = Principal + Interest

3 = 2 + Interest

Interest = 3 - 2 = 1

We know,

Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)

1 = \(\frac{2×Rate × 2}{100}\)

Rate = 25%