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If a sum of money placed at simple interest doubles itself in 25 years, then find the rate of interest per annum.
1. 2%
2. 5%
3. 3%
4. 4%

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Correct Answer - Option 4 : 4%


The Sum of money doubles itself in 25 years.


Simple interest is the interest calculated on the principal portion of the loan or the original contribution to the saving account.

Formula Used:

Simple Interest = (P × R × T)/100

S.I = Amount - Sum


Let the sum be 'P' then Amount after 25 years = 2P

S.I = 2P - P = P

P = (P × R × 25)/100

⇒ R = 100/25 = 4%

∴ The rate of interest per annum is 4%. 

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