The rate at which a sum becomes four times of itself in 12 years at simple interest will be:
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e. 25%.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = principal, R = Rate, and T = Time
According to the question
Amount = 4P then, S.I. = 4P - P = 3P
⇒ 3P = (P × R × 12)/100
⇒ 300 = R × 12
⇒ R = 25%
Hence, Rate = 25%