What simple interest rate will cause a sum of money to double in 15 years?
Show answer & explanation
Correct answer: A
Explanation
Given:
Time = 15 years
Final amount = 2P
By the formula:
SI = (P × R × T) / 100
SI = 2P − P = P
P = (P × R × 15) / 100
100P = 15PR
R = 100 / 15
= 6.67%