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At what rate the simple interest will be...

At what rate the simple interest will be `2/5` times to te original sum in 10 yr ?

A

`4%`

B

`5(2)/(3)%`

C

`6%`

D

`6(2)/(3)%`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem of finding the rate at which the simple interest will be \( \frac{2}{5} \) times the original sum in 10 years, we can follow these steps: ### Step-by-Step Solution: 1. **Understand the relationship between Simple Interest (SI), Principal (P), Rate (R), and Time (T):** The formula for Simple Interest is given by: \[ SI = \frac{P \times R \times T}{100} \] 2. **Set up the equation based on the problem statement:** According to the problem, the Simple Interest (SI) is \( \frac{2}{5} \) times the Principal (P). Therefore, we can express this as: \[ SI = \frac{2}{5} P \] 3. **Substitute the values into the SI formula:** We know that the time (T) is 10 years. Substituting SI and T into the formula gives us: \[ \frac{2}{5} P = \frac{P \times R \times 10}{100} \] 4. **Simplify the equation:** We can eliminate \( P \) from both sides (assuming \( P \neq 0 \)): \[ \frac{2}{5} = \frac{R \times 10}{100} \] 5. **Cross-multiply to solve for R:** Cross-multiplying gives us: \[ 2 \times 100 = 5 \times R \times 10 \] Simplifying this: \[ 200 = 50R \] 6. **Solve for R:** Dividing both sides by 50: \[ R = \frac{200}{50} = 4 \] 7. **Conclusion:** The rate of interest (R) is \( 4\% \) per annum. ### Final Answer: The rate at which the simple interest will be \( \frac{2}{5} \) times the original sum in 10 years is **4% per annum**.
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