Question

Find the rate of simple interest, if the sum of money triple itself in 14 years.

Answer 1

Answer : Rate of interest = 16%

Explanation:

Method 1:

Formula: RT= (n-1)*100 where R represents rate of interest, T represents time period and n represents the number of times it becomes itself.

Here, T = 14 years and n= 3 ( since it triples itself) [As per the given data}

Substituting all the values in the formula,

R *14 = (3-1)*100

R*14 = 2*100

R*14 = 200

R = 200/14

R = 16%

Method 2:

Formula : R = (SI *100) / PT (using basic formula of SI, SI = PTR /100 )

Assume, Principal (P) = 100; Time period (T) = 14 years; Simple Interest (SI) =200 ( The sum gets tripled so the value that we assumed 100 becomes 300 which include principal 100 + interest 200).

Substituting all the values in the formula we get,

R = (200*100) / 100*14

R = 200/14

R = 16%

The rate of interest at which the money triples itself is 16%