The simple interest on a sum for 8 years is of the sum. The rate of interest per annum is:
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. 10%.
Let the sum be P.
Given, Simple Interest (SI) = (4/5)P Time (T) = 8 years
We know the formula for Simple Interest: SI = (P × R × T) / 100
Substituting the values: (4/5)P = (P × R × 8) / 100
⇒ 4/5 = 8R/100
⇒ 400 = 40R
⇒ R = 400 / 40 = 10
Therefore, the rate of interest per annum is 10%.