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?

Correct option is B

Given:

After 4 years she returned 6/5 of money.

Formula Used:

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

Solution:

Let amount =5

After 4 year  amount  =6

Interest of 4 years = 6-5 =1

According to question

1 =$$\frac{5\times rate \times 4 }{100}$$ 

rate = 100/20 =5%

Rate is 5%