If the ratio of principal and the simple interest after 8 years is 10 : 4 , then the rate of interest p.a. is:
Answer & explanation
Correct answer: option 1
Total interest \(\Rightarrow \) \(\frac{4}{10}\) × 100 = 40%
Total Interest = Rate p.a. × time
40% = Rate p.a × 8years
Rate p.a. = 5%