The rate of interest per annum at which the total simple interest of a certain capital for 1 year is equal to the total simple interest of the same capital at the rate of 5% per annum for 2 years is :

  • 5/2%
  • 10%
  • 25%
  • 12.5%
  • None of these
  • Explanation:

    Let the certain capital = P

    and the required rate of interest = r%

    According to question,

    P×r×1/100 = P×5×2/100

    ∴ r = 5×2 = 10%

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The rate of interest per annum at which the total simple interest of a certain capital for 1 year is
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