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