If the ratio of principal and the simple interest for 5 years is 10 : 7, then the rate of interest (per annum) is:
Answer & explanation
Correct answer: option 4
Ratio of principal and the simple interest for 5 years is 10 : 7
Let principal = 10P & Simple interest = 7P
We know ,
Simple interest = \(\frac{Principal ×Rate × Time }{100}\)
7P = \(\frac{10P×Rate × 5 }{100}\)
Rate = 14%