Question

If a principal of ₹ 1000 doubles in 8 years, what is the rate of simple interest?

Answer 1

Principal = ₹1000 (Given)

Number of years = 8 (Given)

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STEP 1: Find interest earned in the 8 years:

Given that the principal amount doubled

⇒ interest earned = ₹1000

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STEP : Find interest for a year

8 years interest = ₹1000

1 year interest = 1000 ÷ 8 = ₹125

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STEP 3: Find interest rate:

interest rate = 125/1000 x 100 = 12.5%

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Answer: The interest rate is 12.5% per year

Answer 2

12.5 percentage is the answer