Multiple choice

An investment triples itself in $30$ years. The rate of simple interest is

  1. $\;6\%$
  2. $\;6\displaystyle\frac{2}{3}\%$
  3. $\;7\displaystyle\frac{1}{3}\%$
  4. $\;10\%$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If an investment triples, the interest earned is 2 * Principal. Simple Interest = P * R * T / 100. So 2P = P * R * 30 / 100. 2 = 0.3 * R, so R = 2 / 0.3 = 20 / 3 = 6 2/3%.

AI explanation

If the investment triples, the interest earned is twice the principal, meaning the simple interest equals 2P. Using the formula 2P = (P x Rate x 30) / 100, we can cancel P from both sides to get 2 = 30R / 100. Solving for R gives R = 200 / 30 = 6 2/3%.

Keep practicing — related questions