Question

At what rate percent simple interest will a sum of money will amount to 5/3 to itself in 6 years 8 months?

Answer 1

Answer:

Correct option is

B

831%

In case of Simple interest, total amount A is,

A=P(1+100rt)

where

P=Principal

r=interest rate

t=time (in years)=12 (given)

After 12 years, Sum of money doubles itself,

that is A=2P

Now apply the formula,

A=P(1+100rt)

2P=P(1+10012r)

2=1+10012r

1=10012r

Therefore,

r=12100=831percent