Simple Interest Practice Test 1

Question : 2 of 40

Marks: +1, -0

The rate of interest per annum at which the total simple interest of a certain capital for one year is equal to the total simple interest of the same capital at the rate of 5% per annum for 2 years, is:

$5/2 %$
10%
25%
12.5%

Validate

Solution:

Let the sum of money = Rs 1,000
Rate = 5%
Time = 2 years

SI={P×R×T}/{100}

={1000×5×2}/100

= Rs 100
Again the sum of money and same simple interest is taken.
Time = 1 year
Rate = R

SI={P×R×T}/100

⇒100={1000×R×1}/100

⇒R={100×100}/{1000×1}=10%

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