Discussion

In 4 years the simple interest on certain sum of money is 9/25 of the principal. The annual rate of interest is

Answer: C

\[ \text{SI} = \frac{P \times R \times T}{100} \]

Write the interest as a fraction of the principal.

\[ \frac{9}{25}P = \frac{P \times R \times 4}{100} \]

The \( P \) cancels:

\[ \frac{9}{25} = \frac{4R}{100} \quad\Longrightarrow\quad R = \frac{9 \times 100}{25 \times 4} = 9\% \]

Because the interest is quoted as a fraction of the principal, no actual sum is needed.

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