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34 votes
34 votes
A sum of money becomes 8/5 of itself in 5 years at a certain rate of simple interest. Find the rate of interest???​

User Vic Fryzel
by
2.9k points

2 Answers

11 votes
11 votes

Answer : 12%

explanation :

Let the sum of money be P(which is the principal value) and rate of interest be R.

According to the question,

Amount (principal +simple interest) = 8P/5

Time (T) = 5 years

Simple interest (SI) = PRT/100

SI = 5PR/100

Amount = P +SI

8P/5 = P+(5PR/100)

8P/5 = P(100+5R)/100

160 = 100 +5R

5R =60

R = 12

Therefore, rate of interest = 12% p.a.

User Alex  Granovsky
by
2.3k points
5 votes
5 votes
the rate of intrest is 5 because i said so
User Gst
by
2.2k points
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