Question

At what rate of simple interest, a principle amount becomes three times in 20 years

Answer 1

Dear friend,

Let principle be 'P'

Rate of interest = ?

Time = 20 yrs

A = 3 × P = 3P

SI = A-P = 3P - P = 2P

Rate = SI × 100 / Principle × Time

= 2P × 100 / P × 20

= 200 / 20

= 10

Answer: Rate of interest is 10% p.a.

Hope it helps !!!