1.

If the sum of amount becomes 7 times in 20 years then find the rate of simple interest.1. 25%2. 20%3. 30%4. 15%

Answer» Correct Answer - Option 3 : 30%

Given:

A sum of amount becomes 7 times in 20 years at simple interest

Formula used:

S.I = PRT/100

Amount = Principal + S.I

Calculation:

Let the principal be Rs. x

Amount = Rs. 7x

S.I = Rs. (7x – x) 

⇒ Rs. 6x

Now, according to the question

(x × R × 20)/100 = 6x

⇒ R = 6 × 5%

⇒ 30%

∴ The rate of simple interest is 30%



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