Q.If the ratio of a principal amount and its amount after 5 years is 5 : 6, then find the annual simple interest rate.

Let the principal \((p) = 5x\) rupees Time \((t) = 5\) years Interest \((I) = (6x - 5x)\) rupees = \(x\) rupees \[ \therefore\ \text{Rate of interest} \ (r) = \cfrac{100 \times I}{p \times t}\% = \cfrac{100 \times x}{5x \times 5}\% = 4\% \] (Answer)
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