Question

A sum of money triples itself in 20 years at Simple Interest. Find the rate of interest.
1. 5%
2. 10%
3. 15%
4. 20%

Answer 1

Correct Answer - Option 2 : 10%

Given: 

Time period = 20 years

Formula used:

SI = (P × R × T)/100

A = P + SI

Calculations:

The sum of money is 3P

SI = 3P - P

⇒ 2P = (P × R × 20)/100

⇒ 2 = R/5

⇒ R = 10%

∴ The rate of interest is 10%