Q.At what annual percentage rate of interest will the interest on an amount in 4 years become \(\cfrac{1}{6}\) of the total amount? (a) 4% (b) 5% (c) 6% (d) 8%
Answer: B
If the total amount after 4 years is \(x\) rupees, then:
Interest \((I)=\cfrac{x}{6}\) rupees
\(\therefore\) Principal \((p)=(x-\cfrac{x}{6})\) rupees = \(\cfrac{5x}{6}\) rupees
Time \((t)=4\) years

\(\therefore\) Rate of interest \((r)=\cfrac{100\times I}{pt} \%\)

\(=\cfrac{100\times \cfrac{x}{6}}{\cfrac{5x}{6}\times 4} \%\)

\(=\cfrac{100\times x \times 6}{5x\times 4\times 6} \%\)

\(=5 \%\)

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