If the ratio of principal and yearly amount be in the ratio 25: 28, then the yearly rate of interest is
The ratio of the principal amount (P) to the yearly amount (A) is given as 25:28. This means:
P/A = 25/28
To find the yearly rate of interest (R), we can use the formula for simple interest:
Simple Interest (SI) = (P * R * T) / 100
Where: SI = Simple Interest P = Principal amount R = Rate of interest (yearly rate) T = Time (in years)
We are given that the ratio of P to A is 25:28, which means:
P/A = 25/28
So, we can express P in terms of A as:
P = (25/28) * A
Now, let's calculate the simple interest using the given principal and yearly amount:
SI = A - P
Substitute the values of P and A:
SI = A - [(25/28) * A]
To find the rate of interest (R), we need to find the percentage of SI with respect to the principal amount (P):
R = (SI / P) * 100
R = { [A - (25/28) * A] / [(25/28) * A] } * 100
Simplify the expression:
R = { [28A - 25A] / (25A) } * 100
R = (3A / 25A) * 100
R = (3/25) * 100
R = 12%
So, the yearly rate of interest is 12%.
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