If the interest is equal to the sum invested for 4 years,what will be the rate of simple interest

Answer 1

To solve this problem, we need to use the formula for simple interest:

Interest = Principal x Rate x Time

Let's assume the sum invested is "P" and the rate of interest is "R".

According to the problem, the interest earned is equal to the sum invested for 4 years. This can be written as:

Interest = Sum Invested

Using the formula for simple interest, we can rewrite this equation as:

P x R x 4 = P

Simplifying, we get:

4R = 1

Now, divide both sides of the equation by 4:

R = 1/4

Therefore, the rate of simple interest is 1/4 or 25%.