An amount becomes 3 times of itself in 2

CUET Preparation Today

Start Free Mocks

Home Questions UKYPDYCJ68

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Simple Interest

Question:

An amount becomes 3 times of itself in 20 years. What is the rate of simple interest per annum?

Options:

15%

10%

6.67%

Correct Answer:

10%

Explanation:

Let Principal = 1

Amount = 3 × P = 3

So, Interest = Amount - Principal = 3 - 1 = 2

T = 20 years

SI = $\frac{P\;R\;T}{100}$

$2=\frac{1×R×20}{100}$ ⇒ R = 10%.