Multiple choice

If any amount with simple interest become double in 8 years then yearly interest rate will be ____________.

  1. 11.5%

  2. 12%

  3. 12.5%

  4. 13%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest: Amount = P(1 + RT/100). If it doubles, 2P = P(1 + R*8/100), so 1 = 8R/100, R = 100/8 = 12.5 percent.

AI explanation

Let the principal be P; doubling the amount means the simple interest earned in 8 years is also P. Using the formula Rate equals Interest multiplied by 100 divided by (Principal times Time), the rate is P multiplied by 100 divided by (P multiplied by 8), which equals 12.5%. The result is 12.5%.

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