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    A woman borrowed some money on simple interest. After 4 years she returned 6/5 of money to the lender. What was the rate of interest?
    Question

    A woman borrowed some money on simple interest. After 4 years she returned 6/5 of money to the lender. What was the rate of interest?

    A.

    3% p.a.

    B.

    5% p.a.

    C.

    4% pa.

    D.

    2% p.a.

    Correct option is B

    Given:

    After 4 years she returned 6/5 of money.

    Formula Used:

    Simple interest = amount×rate×time100\frac{amount \times rate \times time}{100}

    Solution:

    Let amount =5

    After 4 year  amount  =6

    Interest of 4 years = 6-5 =1

    According to question

    1 =5×rate×4100\frac{5\times rate \times 4 }{100} 

    rate = 100/20 =5%

    Rate is 5%

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