Question

The simple interest earned on a certain amount is double the amount when invested for 10 years. What is the interest rate being offered? 1) 40% 2) 12% 3) 20% 4) 15%

Answer 1

Answer is 20% ..............

Answer 2

Answer:

OPTION (3) 20%

Step-by-step explanation:

Let the Principal(p)=x

Then Simple Interest(SI)=2x

Number of years N=10

There for Rate of Interest per annum(R)=$\frac{100*SI}{P*N}$

ie,

$\frac{100*2x}{x*10}$

=$\frac{100*2}{10}$

=20%