Simple Interest | Arithmetic aptitude | Discussion Page | Question 4690

1)

A sum of money becomes $\frac{41}{40}$ of itself in $\frac{1}{4}$ years at certain rate of simple interest. The rate of interest per annum is

A) 10%

B) 1%

C) 2.5%

D) 5%

E) 12%

Answer:

Option A

Explanation:

Let $P=1$ , $SI$ $=\frac{41}{40}-1$ $=\frac{1}{40}$

Rate % $=\frac{(100*SI)}{P\times N}$

$=\left(\frac{\frac{1}{40}\times 100}{1\times\frac{1}{4}}\right)$ = 10%