If a certain sum of money becomes double of itself in 4 years 4 months at simple interest, then what will be the annual rate of interest (approximate)?
Show answer & explanation
Correct answer: D
Explanation
Given:
Time = 4 years 4 months
According to the formula:
SI = (P × R × T)/100
Amount = P + SI
Doubled Amount ⇒ A = 2P
SI = A − P
= 2P − P
= P
4 years 4 months = 13/3 years
(P × R × 13/3)/100 = P
13R/300 = 1
R = 300/13
= 23.07%