The simple interest received on a sum for 20 years is 2/5 of the sum. What is the rate of interest?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 2 percent.
We know that,
S.I. = (P × R × T)
here, S.I. = Simple Interest, P = Principal, R = Rate%, T= Time
Given, S.I. = 2/5 P
Now,
⇒ 2P/5 = (P × R × 20)/100
⇒ 2P/5 = (P × R)/5
⇒ 2P = P × R
⇒ R = 2%
Therefore, the rate of interest is 2% per annum