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      Question

      When the interest accrued on a certain principal amount

      over four years is 4/9 times the interest earned on the same principal amount after another four years, and the annual interest rate is denoted as r%, what is the value of 'r'?
      A 20 Correct Answer Incorrect Answer
      B 25 Correct Answer Incorrect Answer
      C 40 Correct Answer Incorrect Answer
      D 45 Correct Answer Incorrect Answer
      E none of these Correct Answer Incorrect Answer

      Solution

      ATQ, Let the amount be Rs. β€˜100X’. So, [100X Γ— 4 Γ— r/100 ]= [(4/9) Γ— (100X + 100X Γ— 4 Γ— r/100) Or, 4Xr = (4/9) Γ— (100X + 4Xr) Or, 4r = (4/9) Γ— (100 + 4r) Or, 36r = 400 + 16r Or, 20r = 400 Or, r = 20

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