Correct Answer - Option 1 : 25%
Given:
Time = 8 years
Principal triples itself
Formula used:
S.I = (P × R × T)/100
where S.I = Simple Interest, T = Time, R = Rate, P = Principal
Calculation:
Let the Principal and Simple Interest be 100x
According to question amount is triple
Then amount = 300x
S.I = 300x - 100x = 200x
S.I = (P × R × T)/100
200x = [(100x) × 8 × T]/100
⇒ R = 25%
∴ The rate of interest is 25%.
