If the simple interest for 9 years be equal to 45% of the principal, then the rate of interest per annum is equal to:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 5%.
Simple Interest = (Principle × Rate × Time)/100
Simple Interest = (P × R × 9)/100
⇒ 9PR/100 = 45P/100
⇒ R = 5
The rate of interest is 5%