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Multiple choice

At simple interest a sum doubles after 20 years.The rate of interest is -

  1. 5%

  2. 10%

  3. 12%

  4. Data inadequate

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

At simple interest, if a sum doubles in 20 years, the interest equals the principal. So P = P×r×20, giving r = 1/20 = 5% per annum.

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