Practicing Success
If a sum of money amounts to 6 times of itself in 25 years at simple interest, then what is the rate of interest per annum? |
20% 22.5% 15% 25% |
20% |
A sum of money amounts to 6 times of itself in 25 years at simple interest. Let sum of money = P . So , Amount = 6P Amount = Principal + Interest 6P = P + Interest Interest = 6P - P = 5P Simple Interest = \(\frac{Principal ×Rate × Time }{100}\) 5P = \(\frac{P ×Rate × 25 }{100}\) Rate = 20% |