A sum becomes its double in 10 years. Find the annual rate of simple interest?
Answer & explanation
Correct answer: option 2
Assuming the value to be 100, according to the question value increases by 100% or becomes double i.e.,200 in 10 years.
So, the simple interest comes out to be 100.
Formulae for SI = \(\frac{\text{P Χ R Χ T} }{ 100}\)
100 = \(\frac{\text{100 Χ R Χ 10} }{ 100}\)
100 = \(\frac{\text{1000R} }{ 100}\)
100 = 10R
R = 10%