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The simple interset on a sum is (5)/(9) ...

The simple interset on a sum is `(5)/(9)` th of the principal for 25 years. What is the rate (in per cent) of interset per annum ?

A

`(25)/(9)`

B

`(9)/(2)`

C

`(20)/(9)`

D

`(15)/(4)`

Text Solution

AI Generated Solution

The correct Answer is:
To find the rate of interest per annum when the simple interest is \( \frac{5}{9} \) of the principal for 25 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. **Identify the given values**: - Simple Interest (SI) = \( \frac{5}{9} P \) - Time (T) = 25 years 3. **Substitute the values into the Simple Interest formula**: \[ \frac{5}{9} P = \frac{P \times R \times 25}{100} \] 4. **Cancel out the Principal (P)**: Since P is common on both sides (assuming \( P \neq 0 \)), we can divide both sides by P: \[ \frac{5}{9} = \frac{R \times 25}{100} \] 5. **Rearranging the equation to solve for R**: Multiply both sides by 100 to eliminate the fraction: \[ 100 \times \frac{5}{9} = R \times 25 \] \[ \frac{500}{9} = R \times 25 \] 6. **Isolate R**: Divide both sides by 25: \[ R = \frac{500}{9 \times 25} \] \[ R = \frac{500}{225} \] \[ R = \frac{20}{9} \] 7. **Convert R to percentage**: Since R is already in percentage form, we conclude: \[ R = \frac{20}{9} \text{ percent} \] ### Final Answer: The rate of interest per annum is \( \frac{20}{9} \) percent.
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