The simple interest on a sum of money is 1 / 16 of the principal and the number of years is equal to the rate per cent annum. Find the rate per cent.
Correct Answer: 21/2
Explanation:
Let principal = P, time = T and rate = T
According to the question,
(P x T x T) / 100 = P/16 [∵ time and rate are equal]
⇒ T2 = 100/16
or T = 10/4 = 5/2 = 21/2 %
