The simple interest of an amount is \(\frac{16}{25}\) of the principal. Find the rate of interest per annum, if the time and interest rate both are numerically equal .
Answer & explanation
Correct answer: option 1
ATQ,
S.I. = \(\frac{16}{25}\) of P
Principal : S.I. = 25 : 16
Total rate of interest = \(\frac{16}{25}\) × 100% = 64%
Note: {Rate of int.(p.a.) × time = Total Rate of Interest}
Therefore,
R × T = Total Rate of Interest (time = rate (given))
R2 = 64
R = 8