A sum of money becomes 6 times in 25 years at simple interest. Find the rate of interest per annum.
Answer & explanation
Correct answer: option 1
ATQ,
Principal : Amount
1 : 6 = 5 (S.I.)
Total Rate of interest in 25 years = \(\frac{5}{1}\) × 100 = 500%
Rate of interest per annum = \(\frac{500}{25}\) = 20%