Arithmetichard · Past Paper

At what rate of SI will the interest on a certain sum be 0.125 times the principal in 2.5 years?

A4%
B5%
C6%
D8%

✓ Correct Answer: B5%

0.125P = (P * 2.5 * R) / 100 => 12.5 = 2.5R => R = 5%.

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