The simple interest on a certain sum is one-fourth of the principal, and the number of years is equal to the rate of interest per annum. What is the rate of interest?
Show answer & explanation
Correct answer: B
Explanation
Simple Interest = 1/4 of the Principal
Since T = R
PR² / 100 = P/4
R² = 100 / 4
R² = 25
R = 5%