Question

Simple interest on certain principle is 1/5 of the amount in 5 yrs find rate.

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Answer 1

9514 1404 393

Answer:

4%

Explanation:

The simple interest formula can be used.

I = Prt

where r is the annual rate and t is the number of years.

1/5 = 1·r·5

(1/5)/5 = r = 1/25 · 100% = 4%

The rate is 4%.