Multiple choice

A certain sum of money was deposited in bank and it become two-fold in 10 years, what is the rate of simple interest?

  1. $8$%
  2. $10$%
  3. $12$%
  4. $13$%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A = 2P, so SI = P. P = (P * R * 10) / 100 => 1 = R/10 => R = 10%.

AI explanation

If the money becomes two-fold, the simple interest earned is equal to the principal P. Using the formula I = (P * R * T) / 100, we get P = (P * R * 10) / 100. Canceling P from both sides gives 1 = R / 10, so the rate of interest is 10%.

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