Answer:
Given: The sum of interest in 5 years is equal to half of the sum.
To find: Rate of interest (r)
Solution: Let's assume the sum of money is S and the rate of interest is r.
The simple interest(SI) formula is given by:
SI = (P*r*t)/100, where P is principal, r is rate of interest and t id time period.
In 5 years, SI is equal to half of the sum:
SI = S/2
also, the time period t is given s 5 years
Substituting these values in the formula, we get:
S/2 = (S*r*t)/100
multiplying both sides by hundred, we get:
50S = 5Sr
dividing both sides by 5S, we get:
r = 10%
Therefore, the rate of interest is 10%.