Multiple choice

Simple interest on a certain sum is 16/25 of the sum. The rate per cent if the rate per cent and time (in years) are equal, is

  1. 6%

  2. 8%

  3. 10%

  4. 12%

  5. 15%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

SI = (P * R * T) / 100. Given SI = 16/25 * P and R = T. 16/25 * P = (P * R * R) / 100. 16/25 = R^2 / 100. R^2 = 1600 / 25 = 64. R = 8%.

AI explanation

Using the simple interest formula, we have Simple Interest = (Principal x Rate x Time) / 100. Since the simple interest is 16/25 of the principal, we can write (Principal x R x R) / 100 = (16/25) x Principal. Canceling the principal from both sides gives R squared divided by 100 equals 16/25, so R squared equals 64 and the rate per cent is 8%.

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