The simple interest on a sum of money is 1/16th of the principal, and the number of years is equal to rate per annum. Find the rate percentage.
1. 10%
2. 15%
3. 5%
4. 2.5%
5. 6%
1. 10%
2. 15%
3. 5%
4. 2.5%
5. 6%
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Correct Answer – Option 4 : 2.5%
Given:
I = (1/16) × P
R = T
Formula used:
S.I. = P × R × T/100
Calculation:
According to given
⇒ S.I. = P × R × R/100
⇒ 1/16 = R2/100
⇒ R2 = 100/16
⇒ R = 10/4
⇒ R = 2.5%
∴ Required rate percentage is 2.5%