Find the simple interest rate at which a sum of money becomes five times at simple interest in 10 years.
A. 40%
B. 35%
C. 25%
D. 50%
1. B
2. D
3. A
4. C
Find the simple interest rate at which a sum of money becomes five times at simple interest in 10 years.
A. 40%
B. 35%
C. 25%
D. 50%
1. B
2. D
3. A
4. C
1. B
2. D
3. A
4. C
Correct Answer – Option 3 : A
Given:
Time period = 10 years
Formula used:
\(\rm S.I = \frac{{{\rm{P\;}} × {\rm{\;t\;}} × {\rm{\;r}}}}{100}\)
P = principal
t = Time period
r = Rate of interest
Calculation:
Let P be Rs. x
According to the question,
According to the question money becomes 5x
So, interest = 5x – x = 4x
\(\rm 4x = \frac{{{\rm{x\;}} × {\rm{\;10\;}} × {\rm{\;r}}}}{100}\)
⇒ 400x = 10xr
⇒ 40 = r
⇒ Rate of interest = 40%
∴ Required rate of interest is 40%