Q.If the ratio of principal to interest-principal in a year is 8:9, then what is the annual simple interest rate? (a) 12\(\cfrac{1}{2}\)% (b) 15\(\cfrac{1}{2}\)% (c) 12% (d) 15%
Answer: A
Assume that the principal \((p) = 8x\) rupees
And the interest-principal \(= 9x\) rupees
Interest \((I) = (9x - 8x) = x\) rupees
Time \((t) = 1\) year

∴ Interest rate \((r) = \cfrac{100 × I}{pt}\)
\(= \cfrac{100 × x}{8x × 1} = \cfrac{25}{2} = 12\cfrac{1}{2}\%\)

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