Multiple choice

If a sum of money doubles itself in 8 years, then the interest rate is

  1. 8 1 2 %

  2. 10%

  3. 10 1 2 %

  4. 12 1 2 %
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D Correct answer
AI explanation

If a sum doubles, the simple interest equals the principal, meaning Interest equals P. Using the simple interest formula P times R times T divided by 100 equals P, we substitute the time of 8 years to get P times R times 8 divided by 100 equals P. Solving for R gives 8R equals 100, resulting in a rate of 12 1/2 percent.

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