1.

The rate of simple interest per annum atwhich a sum of money double itself in 16⅔ yrs. is1). 4%2). 5%3). 6%4). $6\frac{2}{3}$ %

Answer»

Let the principal AMOUNT be P.

Now the amount A after 16⅔years is doubled, hence amount is 2P.

I = P × R × T/100

Where,

P = principal amount

R = rate of interest

T = TIME in years = 162/3 = 50/3

I = simple interest

Amount A = I + P

According to question

A = P + P × R × T/100

2P = P + P × R × T/100

P = P × R × T/100

R = 100/T

R = 100 × 3/50

R = 6%



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