A sum of money becomes of itself in 2 years at a certain rate of simple interest. The rate per annum is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 7.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = Principal, R = Rate and T = Time
S.I. = 8/7P - P = 1/7P
⇒ 1/7P = (P × R × 2)/100
⇒ 1/7 = R/50
⇒ R = 50/7
⇒ R = 7