Q.What should be the annual rate of simple interest (in percentage) so that the interest earned in 4 years becomes \(\frac{8}{25}\) of the principal amount?

Let the principal \((p) = x\) taka ∴ Total interest \((I) = \frac{8x}{25}\) taka Time \((t) = 4\) years ∴ Rate of interest \((r) = \frac{100 \times I}{p \times t}\%\) \(= \frac{100 \times \frac{8x}{25}}{x \times 4}\%\) \(= \frac{100 \times 8}{25 \times 4}\%\) \(= 8\%\) ∴ The rate of interest will be 8%
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