Simple interest on a certain sum is $\frac{54}{75}$ of the sum. What is the rate of interest per annum if the value of the rate of interest per annum is half the time period (in years) of investment?
Answer & explanation
Correct answer: option 2
Simple interest on a certain sum is \(\frac{54 }{75 }\) of the sum.
So , Let initial sum = 75 & Simple interest = 54
Rate of interest = \(\frac{Time }{2 }\)
Simple interest = \(\frac{Principal ×Rate × Time }{100}\)
54 = \(\frac{75 × Rate × (2×Rate) }{100}\)
( Rate )² = 36
Rate = 6%