Simple interest accrued on a certain sum is 16/25 of the principal sum. If the numerical value of the rate of annual interest (%) and time (years) are equal, what is annual rate of interest?

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UGC NET Paper 1: Held on 1 Oct 2022 Shift 2
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  1. 10%
  2. 7%
  3. 6%
  4. 8%

Answer (Detailed Solution Below)

Option 4 : 8%
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UGC NET Paper 1: Held on 21st August 2024 Shift 1
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50 Questions 100 Marks 60 Mins

Detailed Solution

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Given:

SI = 16P/25

R = T

Concept used:

SI = PRT/100

SI = Simple Interest

R = Rate

P = Principle amount

T = Time period in year

Solution:

SI = PRT/100

Let's put the values given in the above formula.
⇒ 16P/25 = PR2/100
R = 8%
Hence, the correct option is 4.
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