Question

An amount becomes twice in 15 years. Find the rate%
1. 20/3 %
2. 17/5 %
3. 16/3 %
4. 22/7 %

Answer 1

Correct Answer - Option 1 : 20/3 %

Given:

An amount becomes twice in 15 years

Formula used:

S.I = PRT/100

Where, P = Principal

R = Rate of interest

T = Time period

Calculation:

Let the principal be P

Amount after 15 years = 2P

SI = (2P – P)

⇒ P

Now, according to the question

(P × R × 15)/100 = P

⇒ 15R/100 = 1

⇒ R = 20/3%

∴ The rate of interest is 20/3%