Simple interest accrued on a certain sum is 16/25 of the principal. If the numerical value of the annual rate of interest and the time in years are equal, what is the annual rate of interest?
A10%
B7%
C6%
D8% ✓ Correct
Correct answer: (D) 8%
Explanation
The rate is 8% per annum.
With rate = time, SI = P x R x R / 100 = 16P/25.
So R^2 / 100 = 16 / 25.
R^2 = 1600 / 25 = 64.
R = 8.
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