Question

A sum of money becomes its double in 20 years. Find the annual rate of simple interest:

• A. 10%
• B. 7%
• C. 5%
• D. 4%

Answer 1

Answer:

C. 5%

If a sum of money becomes its n times in N years, then the rate of interest = (n - 1)100/N So here Rate of interest R = (2 -1)100/20 = 100/20 = 5%