Question : The Simple Interest on a sum of money is $\frac{1}{4}$ of the principal, and the number of years is equal to the rate percent per annum. The rate percent is:
Option 1: 2.5%
Option 2: 5%
Option 3: 7.5%
Option 4: 10%
Correct Answer: 5%
Solution : Let the rate and time be $x$. Given: SI = $\frac{1}{4}P$ By using the formula of Simple Interest: SI = $\frac{\text{P×R×T}}{100}$ where $P$ is principal, $T$ is time in years and $R$ is the rate of interest per annum. $\frac{1}{4}P$ = $\frac{P×x×x}{100}$ ⇒ $x^2$ = $\frac{100}{4}$ ⇒ $x^2$ = 25 ⇒ $x$ = 5 Hence, the correct answer is 5%.
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Question : The rate of interest per annum at which the total simple interest of a certain capital for 1 year is equal to the total simple interest of the same capital at the rate of 5% per annum for 2 years, is:
Option 1: $\frac{5}{2}$%
Option 2: $10$%
Option 3: $25$%
Option 4: $12.5$%
Question : The simple interest on a sum of money for 3 years is Rs. 240 and the compound interest on the same sum at the same rate for 2 years is Rs. 170. The rate of interest is:
Option 1: $8$%
Option 2: $29\frac{1}{6}$%
Option 3: $12\frac{1}{2}$%
Option 4: $5\frac{5}{17}$%
Question : A moneylender claims to lend money at the rate of 10% per annum simple interest. However, he takes the interest in advance when he lends a sum for one year. At what interest rate does he lend the money?
Option 1: $10$%
Option 2: $10\frac{1}{9}$%
Option 3: $11$%
Option 4: $11\frac{1}{9}$%
Question : A sum amounts to INR 7,656 in 4 years and to INR 8,120 in 5 years at a certain simple interest rate percent per annum. The rate of interest is:
Option 1: 4%
Option 2: 3%
Option 3: 7%
Option 4: 8%
Question : A sum amount doubles in 8 years by simple interest. Then the rate of simple interest per annum is:
Option 1: 10%
Option 2: 12.5%
Option 3: 15%
Option 4: 20%
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