Multiple choice

A principal is doubled in 5 year at simple interest. What is the rate of interest per year?

  1. 8%

  2. 10%

  3. 15%

  4. 20%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple Interest = Principal × Rate × Time / 100. When principal doubles in 5 years, SI equals the principal P. So P = P × R × 5 / 100, which gives 100 = 5R, so R = 20% per annum. Option D is correct.

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