A sum of money becomes triple of itself in 10 years at the rate of simple interest, find the annual rate of interest.
A. 5%
B. 8%
C. 10%
D. 20%
1. D
2. B
3. C
4. A
A sum of money becomes triple of itself in 10 years at the rate of simple interest, find the annual rate of interest.
A. 5%
B. 8%
C. 10%
D. 20%
1. D
2. B
3. C
4. A
1. D
2. B
3. C
4. A
Correct Answer – Option 1 : D
Given:
Time = 10 years
Money triple in 10 years.
Formula used:
Simple interest = (P × R × T)/100
Where P → Principal
T → Time
R → Rate
Calculation:
Let the principal be ‘x’.
So, Amount = 3x
Simple interest = 2x
Simple interest = (P × R × T)/100
⇒ 2x = (x × R × 10)/100
⇒ R = (2 × 100)/10
⇒ R = 20%
∴ The annual rate of interest is 20%.