At simple interest, a certain amount of money doubles in five years. What is the interest rate?
Show answer & explanation
Correct answer: A
Explanation
Time = 5 years
Amount = 2P
According to the formula:
SI = (P × R × T) / 100
A = P + SI
2P = P + SI
SI = P
(P × R × 5) / 100 = P
R × 5 = 100
R = 20% per annum