Multiple choice

Mr. Y gave some money at simple interest and at the end of 10 years, got back twice the sum. The percent per annum is

  1. 2%

  2. 4%

  3. 5%

  4. 10%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Simple interest = Amount - Principal. If amount is twice the sum, interest = P. Formula: P = (P * R * 10) / 100. Solving for R: 1 = R * 10 / 100, so R = 10%.

AI explanation

Let the principal sum be P. Since the amount at the end of 10 years is twice the sum, the simple interest earned is 2P - P = P. Using the Simple Interest formula, P = (P x R x 10) / 100, we get 100 = 10R. Solving for R gives 10, so the rate is 10%.

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