Multiple choice

At what rate per cent simple interest will a sum of money triple itself in $25$ years?

  1. $6$%
  2. $8$%
  3. $5$%
  4. $4$%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple Interest = P*R*T/100. If sum triples, Interest = 2P. 2P = P*R*25/100. 2 = R/4. R = 8%.

AI explanation

If a sum triples in 25 years, the total simple interest earned is twice the principal, so we can let the principal be 100 and the interest be 200. Using the formula Rate = (Simple Interest * 100) / (Principal * Time), we get Rate = (200 * 100) / (100 * 25). This simplifies to 20000 / 2500, which equals 8%. The result is 8%.

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