Multiple choice

The simple interest on the sum of money invested for 3 years at R% p.a. is 2/5 th of the sum invested. What is the value of R?

  1. 113.33%

  2. 12.33%

  3. 13.33%

  4. 17.33%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple Interest = (P * R * T) / 100. Given SI = (2/5)P and T = 3. (2/5)P = (P * R * 3) / 100. 2/5 = 3R/100 => 200 = 15R => R = 200/15 = 13.33%.

AI explanation

The simple interest accrued over 3 years is given as 2/5 of the principal sum, so using the formula SI equals P times R times T divided by 100, we have P times R times 3 divided by 100 equals 2/5 times P. Canceling P from both sides and solving for R gives R equals 2/5 times 100/3, which results in a rate of 13.33%.

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