In 5 years, the simple interest on an amount of Rs. $P$ is $\frac{2}{5}$ of the principal. What is the rate of interest per annum?

Question

Accepted Answer

**Solution:**

1. Given:
   - Principal = $P$
   - Time = $T = 5$ years
   - Simple Interest = $SI = \frac{2}{5} P$

2. The formula for simple interest is:
   $$SI = \frac{P 	imes R 	imes T}{100}$$

3. Substitute the known values:
   $$\frac{2}{5} P = \frac{P 	imes R 	imes 5}{100}$$

4. Cancel $P$ from both sides:
   $$\frac{2}{5} = \frac{5R}{100}$$

5. Simplify the right side:
   $$\frac{2}{5} = \frac{R}{20}$$

6. Multiply both sides by 20:
   $$R = \frac{2}{5} 	imes 20 = 8$$

**Answer:** The rate of interest per annum is $8\%$.

Answer

Answer

Answer