The simple interest on a sum for 8 years is three-fifth of the sum. Find the rate of interest per annum.

Question

Accepted Answer

Let the principal amount be P.

Given, Simple Interest (SI) for 8 years = (3/5) * P

Formula for Simple Interest:
SI = (P * R * T) / 100

Where R = rate of interest per annum, T = time in years

Substitute the values:
(3/5) * P = (P * R * 8) / 100

Divide both sides by P (P ≠ 0):
3/5 = (R * 8) / 100

Multiply both sides by 100:
(3/5) * 100 = 8R

Calculate left side:
(3 * 100) / 5 = 8R

60 = 8R

Divide both sides by 8:
R = 60 / 8 = 7.5%

Therefore, the rate of interest per annum is 7 1/2 %.

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