Multiple choice

Find the rate of interest. I. A sum of money becomes double of itself at simple interest in 12.5 years. II. 5000 becomes 5832 in 2 years at compound interest.

  1. Only I

  2. Only II

  3. Both I and II

  4. Either I or II

  5. Neither I nor II
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Statement I: Sum doubles in 12.5 years at simple interest, so rate = 100/12.5 = 8% per annum. Statement II: 5000 becomes 5832 in 2 years at CI. Using formula 5832 = 5000(1 + r/100)², we get r = 8% per annum. Either statement alone gives rate = 8%.

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