Q.If the ratio of principal to amount after 1 year is 20 : 21, what is the annual rate of simple interest (in percentage)?

Let the principal \((p) = 20x\) rupees Amount after 1 year \(= 21x\) rupees \(\therefore\) Interest \((I) = 21x - 20x = x\) rupees Time \((n) = 1\) year \(\therefore\) Rate of interest \((r) = \frac{100 \times I}{p \times n}\%\) \(= \frac{100 \times x}{20x \times 1}\%\) \(= 5\%\) \(\therefore\) The rate of interest is \(5\%\)
Similar Questions