If the simple interest on a certain sum of money after 3 1⁄8 years is 1⁄4 of the principal, what is the rate of interest per annum?
Q1. If the simple interest on a certain sum of money after 3 1⁄8 years is 1⁄4 of the principal, what is the rate of interest per annum?
Answer: 8%
Explanation: SI = P×r×t; P/4 = P×r×(25/8); r = (1/4)×(8/25) = 2/25 = 8%.