A sum of money becomes 8/5 of itself in 5 years at a certain rate of simple interest. What is the rate of interest?
Q1. A sum of money becomes 8/5 of itself in 5 years at a certain rate of simple interest. What is the rate of interest?
Answer: 12%
Explanation: Simple interest = (8/5 - 1) * principal = 3/5 * principal. Rate = (SI * 100) / (P * T) = ((3/5) * 100) / 5 = 12%.