Multiple choice

A man buys land and gives for it $25$ times the annual rent. What rate per cent of interest does he get for his money?

  1. $5$%
  2. $4$%
  3. $2$%
  4. $10$%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If the land price is 25 times the annual rent, then the annual rent is 1/25 of the purchase price. The rate of interest is (Annual Rent / Purchase Price) * 100, which is (1/25) * 100 = 4%.

AI explanation

Let the annual rent be 1 unit, making the purchase price 25 units and the annual interest income 1 unit. Using the formula for rate, Rate = (Interest * 100) / (Principal * Time), we get Rate = (1 * 100) / (25 * 1). Solving this gives a rate of 4%. The result is 4%.

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