Multiple choice

A certain sum is invested on simple interest. If it triples in $10$ years, what is the rate of interest?

  1. $20\%$ p.a.
  2. $15\%$ p.a.
  3. $10\%$ p.a.
  4. $8\%$ p.a.
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A Correct answer
Explanation

If a sum P triples, the interest is 2P. Using I = P * R * T, 2P = P * R * 10. R = 2/10 = 0.2 = 20%.

AI explanation

If a sum triples in 10 years under simple interest, the interest earned is twice the principal, meaning the interest equals 2P. Using the formula Rate equals (Interest x 100) divided by (Principal x Time), the rate is (2P x 100) divided by (P x 10), which equals 20% per annum.

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