Multiple choice

Find the rate percent of the simple interest per annum if the sum borrowed becomes double in 5 years.

  1. 15%

  2. 16%

  3. 20%

  4. 24%

  5. 25%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest I = P * r * t / 100. If sum doubles, I = P. So P = P * r * 5 / 100. 1 = 5r / 100, so r = 20%.

AI explanation

If the sum doubles in five years, the simple interest earned equals the principal amount. Using the simple interest formula, the rate equals 100 multiplied by the interest divided by the principal and the time. Substituting the values gives 100 multiplied by 1 divided by 5, which equals 20%.

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