An investment triples itself in 30 years on simple interest. The rate of interest per annum is:
Answer & explanation
Correct answer: option 2
Given:
The investment triples in 30 years
A = 3P (since the investment triples)
Substituting the values in the formula:
3P = P(1 + rt)
3 = 1 + 30r
r = 0.0667 or $6 \frac{2}{3}$%