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

  1. 1.5 percent
  2. 2 percent
  3. 1 percent
  4. 3 percent

Answer: 3. 1 percent

Solution:
formula S.I= PXRXT/(100)
2/5X = X(R)(40)/(100)
R= 1 percent

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