Multiple choice

What is the rate of simple interest if a sum of money gets doubled in 5 years?

  1. 15%

  2. 10%

  3. 5%

  4. 20%
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D Correct answer
Explanation

Simple interest I = P. If sum doubles, I = P. Formula I = (P*R*T)/100. So P = (P*R*5)/100, which simplifies to 1 = R/20, so R=20%.

AI explanation

If a sum of money gets doubled in 5 years, the simple interest earned equals the principal, meaning P = P * R * 5 / 100. Solving for the rate gives R = 20%. The rate of simple interest is 20%.

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