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The simple interest on a sum of money is 4/9 of the principal. What will be the annual rate of interest…

With rate and time both equal to \(n\), simple interest is \(\frac{P n^2}{100}=\frac{4P}{9}\), so \(n^2=\frac{400}{9}\) and \(n=\frac{20}{3}\). This is \(6\frac{2}{3}\)…

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The simple interest on a sum of money is 4/9 of the principal. What will be the annual rate of interest and time (in years), if both of these are numerically equal?

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Correct answer D

With rate and time both equal to nn, simple interest is Pn2100=4P9\frac{P n^2}{100}=\frac{4P}{9}, so n2=4009n^2=\frac{400}{9} and n=203n=\frac{20}{3}. This is 6236\frac{2}{3} percent for 6236\frac{2}{3} years.

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