Question : The simple interest on a sum for five years is two-fifths of the sum. The rate of interest per annum is:
Option 1: 1%
Option 2: 8%
Option 3: 6%
Option 4: 4%
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Correct Answer: 8%
Solution : Time = 5 years Let the principal be $x$ Rate = $r$ So, simple interest = $\frac{2x}{5}$ Simple interest =$\frac{\text{Principal×Rate×Time}}{100}$ ⇒ $\frac{2x}{5}$ =$\frac{x×r×5}{100}$ ⇒ $r = \frac{2x×100}{5×5x}$ ⇒ $r = \frac{200x}{25x}$ $\therefore r = 8\%$ per annum Hence, the correct answer is 8%.
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