The simple interest on a sum is one-fourth of the sum, and the rate of interest per annum equals the number of years. What is the rate?
A. 4%
B. 6%
C. 2.5%
D. 5%
A. 4%
B. 6%
C. 2.5%
D. 5%
Best answer
Answer: D. 5%
Answer: (D) 5%
SI = \(\frac{P \times R \times R}{100} = \frac{P}{4}\), so R² = 25 and R = 5%.
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