Multiple choice

Atul lent a sum of money at simple interest The sum trebled in 16 years. The interest rate was -

  1. 10 percent

  2. 8 percent

  3. 16 percent

  4. 12.5 percent
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

If the sum trebles, the interest is 2 times the principal (SI = 2P). SI = (P * R * T) / 100. 2P = (P * R * 16) / 100. 2 = 16R / 100. R = 200 / 16 = 12.5%.

AI explanation

When a sum trebles under simple interest, the interest earned is twice the principal. Using the formula Rate = (100 * Interest) / (Principal * Time), the rate becomes Rate = (100 * 2 * Principal) / (Principal * 16). This simplifies to 200 / 16. The interest rate was 12.5 percent.

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