A certain sum is lent at x% p.a. simple interest for x/3 years. The simple interest on the sum is equal to one-third of the sum. The value of x is:
Answer & explanation
Correct answer: option 2
ATQ,
Simple interest = \(\frac{Principal }{3 }\)
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
\(\frac{Principal }{3 }\) = \(\frac{Principal × x × x }{100 × 3}\)
( x )² = 100
x = 10%