What is the approximate rate of simple interest per annum, if a sum of money becomes 6 times of itself in 15 years?
Answer & explanation
Correct answer: option 3
Given :-
Sum becomes 6 times of itself in 15 years .
Let sum = P , then Amount = 6P
Simple interest of 15 years= 6P - P = 5P
Simple interest of 1 year = \(\frac{5P }{15}\) = \(\frac{P }{3}\)
We know ,
Simple Interest = \(\frac{Principal × Rate × Time }{100}\)
\(\frac{P }{3}\) = \(\frac{P × Rate × 1 }{100}\)
Rate = 33.33%