If a sum doubles itself in 10 years under simple interest, what is the annual rate of interest?
Show answer & explanation
Correct answer: A
Explanation
Given:
Amount in 10 years = 2P
By the formula:
A = P(1 + RT/100)
2P = P(1 + RT/100)
1 + RT/100 = 2
RT/100 = 1
10R/100 = 1
R = 10
Annual rate of interest = 10%