Multiple choice

A sum of money lent out at simple interest, doubles itself in $8$ years. Find the rate of interest.

  1. $10 \%$
  2. $12.5 \%$
  3. $14.5 \%$
  4. $17 \%$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If sum doubles, interest = principal. SI = P*R*T/100. P = P*R*8/100. R = 100/8 = 12.5%.

AI explanation

Using the simple interest formula, if a sum doubles in 8 years, the interest earned equals the principal. This means the interest for 8 years is 100 percent. The annual rate of interest is 100 divided by 8, which equals 12.5 percent. The rate is 12.5 percent.

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