A sum becomes 3 times its original amount in 8 years under simple interest. Find the rate of interest.
Show answer & explanation
Correct answer: C
Explanation
Rate = 25% per annum
Working:
Let Principal = P, Amount = 3P, so SI = 3P - P = 2P
SI = (P × R × T)/100
2P = (P × R × 8)/100
2 = 8R/100
R = 200/8 = 25%