Correct Answer - Option 1 : 10%
Given:
A sum of money gets doubled in 10 years at simple interest(SI)
Formula used:
SI = \(\dfrac{P \times R \times T}{100}\)
Amount = P + SI
P = Principal
R = Rate of interest
T = Time
Calculation:
According to the question:
Amount after 10 years = 2P
Hence, the SI in 10 years = P
⇒ P = \(\dfrac{P \times R \times 10}{100}\)
⇒ R = 10
∴ Rate of interest = 10%
