A sum of money becomes 7⁄5 of itself in 4 years at a certain rate of simple interest. The rate per annum is:
Q1. A sum of money becomes 7⁄5 of itself in 4 years at a certain rate of simple interest. The rate per annum is:
Answer: 10%
Explanation: Simple interest = 7P/5 − P = 2P/5 earned over 4 years; rate = (2P/5)/(P×4) × 100 = 10% p.a.