At what annual simple interest rate will a sum of money double itself in 8 years?
Show answer & explanation
Correct answer: B
Explanation
In simple interest, when a sum of money doubles, the interest equals the principal.
SI = P
Simple Interest = (P × R × T)/100
P = (P × R × 8)/100
1 = (R × 8)/100
R = 100/8
R = 12.5%