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The simple interest received on a sum for 40 years is 2/5 of the sum. What is the annual rate of interest?
Question

The simple interest received on a sum for 40 years is 2/5 of the sum. What is the annual rate of interest?

A.

1.5 percent

B.

1 percent

C.

2 percent

D.

3 percent

Correct option is B

Given:
Simple interest = 2/5 of sum in 40 years
Formula Used:
Simple Interest = P×R×T100\frac{P × R × T }{ 100}​​
Solution:

Let the Principal amount be P
2/5 P = 40PR/100
R = 1%

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