Multiple choice

An amount gets triple of its original value after 10 years at a rate of simple interest. Find the rate.

  1. 10%

  2. 20%

  3. 25%

  4. 30%

  5. 35%
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula: SI = (P*R*T)/100. If the amount triples, SI = 2P. So 2P = (P*R*10)/100. 2 = R/10, so R = 20%.

AI explanation

If the amount triples, the interest earned is twice the principal, meaning the total interest is 2P. Using the simple interest formula, 2P equals P times R times 10 divided by 100. Solving this gives R equals 20, so the rate is 20%.

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