Practice mode Simple Interest

At what rate of simple interest per annum does a sum become 5/4 of itself in 3 years?

Correct answer D. 8 1/3%

Explanation

SI = 5/4 P − P = P/4. So R × 3 / 100 = 1/4, giving R = 25/3 = 8 1/3% per annum.

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