Choose the correct option:
A bank advertises that you can double the money by investing it with them for 8 years. What is the interest rate offered by them?
A) 12.50%
B) 10%
C) 8.50%
D) 14%
Answers
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2
Answer:
A) 12.50%
Step-by-step explanation:
Let the amount invested be 100 rupees
the sum doubles after 8 years = 200
simple interest = Amount - Simple interest
= 200 - 100
= 100
SI = PTR/100
100 = 100×8×r/100
100 × 100 = 100 × 8r
10000 = 100 × 8r
10000/100 = 8r
100 = 8r
r = 100/8
r = 12.5%
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