A certain sum of money amounts to 1 2 of itself in 2 years applying simple interest Find the rate of...........

Quantitative Aptitude (MTS) Simple Interest

A certain sum of money amounts to 1/2 of itself in 2 years applying simple interest. Find the rate of simple interest per annum .

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SSC MTS 22nd July 2022 Shift-1

25%

15%

16%

26%

- To find the rate of simple interest per annum, let's first recall the formula for simple interest:

$$ \text{Simple Interest} (SI) = \frac{\text{Principal} \times \text{Rate} \times \text{Time}}{100} $$

- According to the problem:

- The simple interest earned is $ \frac{1}{2} $ of the principal (P) over 2 years.

- So, $\text{SI} = \frac{P}{2}$

- Plug into the SI formula:

$\frac{P \times \text{Rate} \times 2}{100} = \frac{P}{2}$

- Simplifying, we get:

$\text{Rate} = 25\%$

- Now, let's check the options provided to confirm:

- Option 1: 25%

- Option 2: 15%

- Option 3: 16%

- Option 4: 26%

- The correct answer is Option 1: 25%.

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