Discussion Forum



1)

A sum of money becomes $\frac{41}{40}$ of itself in $\frac{1}{4}$ years at a certain rate of simple interest. The rate of interest per annum is


A) 10%

B) 1%

C) 2.5%

D) 5%

E) 3%

Answer:

Option A

Explanation:

Let the principal be Rs. $1$.

Hence, $S.I$ $=\frac{41}{40}-1$ $=\frac{1}{40}$

Rate % $=\frac{100\times S.I}{P\times N}$ $=\frac{\frac{1}{40}\times 100}{1\times\frac{1}{4}}$ = 10%