The simple interest on a principal is one-fifth of the given principal at the end of five years. What is the rate of interest per annum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 4%.
SI = PRT/100
⇒ (1/5)P = P × R × 5/100
⇒ R = 100/25
⇒ R = 4%