Multiple choice

A sum of money doubles itself in 6 years. Find the rate of interest.

  1. 18.67%

  2. 15.50%

  3. 16.67%

  4. 13.20%

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If a sum doubles, the simple interest earned equals the principal. Using the formula SI = (P*R*T)/100, we have P = (P*R*6)/100. Simplifying gives 1 = 6R/100, so R = 100/6 = 16.67%.

AI explanation

If a sum of money doubles itself in 6 years under simple interest, the interest earned equals the principal, meaning P equals (P x R x 6) / 100. Simplifying this equation by cancelling P and rearranging terms gives R equals 100 divided by 6. This results in a rate of interest of 16.67%.

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