If a sum of money amounts to 6 times of itself in 25 years at simple interest then what is the rate ...........

Quantitative Aptitude (MTS) Simple Interest

If a sum of money amounts to 6 times of itself in 25 years at simple interest, then what is the rate of interest per annum?

This questions was previously asked in

SSC MTS 22nd July 2022 Shift-2

20%

22.5%

15%

25%

- Simple interest formula is: \( \text{Total Amount} = \text{Principal} + \text{Interest} \).

- Given, total amount is 6 times the principal in 25 years.

- Thus, \( 6P = P + \text{SI} \).

- That implies, \( \text{SI} = 5P \).

- Simple Interest (SI) formula is also \( SI = \frac{P \times R \times T}{100} \).

- Plugging values: \( 5P = \frac{P \times R \times 25}{100} \).

- Solving gives: \( R = \frac{5 \times 100}{25} = 20\% \).

- Correct Answer: Option:1- 20%

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