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### Question

Simple interest on a certain sum of money is $1/2$ of the sum for 20 years. What is the rate of interest?

**A**

2%.

**B**

3%.

**C**

5%.

**D**

4%.

**Soln.**

**Ans: a**

We know, I = PRT/100. If I = P/2, then $1/2$ = RT/100. So R = $100/{2 × 20}$ = 2%.