By Ajay Kumar

Verified by Ajay Kumar

At simple interest, a certain amount of money doubles in five years. What is the interest rate?

  1. 20%

  2. 25%

  3. 30%

  4. 40%

Answer: A

Solution

When money doubles, Simple Interest = Principal. Using \(R=\frac{SI\times100}{P\times T}\), we get \(R=\frac{100}{5}=20\%\) per annum.

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