Anuradha invests her money in a firm where the principal amount becomes 3 times in 10 years. What is the yearly rate of simple interest offered by the firm?
Answer & explanation
Correct answer: option 2
Let Principle = Rs 100
Amount = 300 Rs
Time = 10 years
Interest = 300 - 100 = 200 Rs
Interest for 10 Year = Rs 200
Interest for 1 year = Rs 20
∴ Rate=\(\frac{I}{P}\) × 100 = \(\frac{20}{100}\) × 100 = 20%