Question

At what annual rate (rounded off to the nearest integer) of simple interest will a sum of money become five times its initial value in 18 years?

• A. 18%
• B. 20%
• C. 22%
• D. 24%

Answer 1

Answer:

C. 22%

Solution: Given: Simple interest (S.I) = 4 × Principal (P) Time = 18 years Formula used: S.I = (P × R × T)/100 Where, P = principal ; R = rate ; T = time Calculation: ⇒ S.I = (P × R × T)/100 ⇒ 4 × P = (P × R × 18)/100 ⇒ R = 400/18 = 22.22 ≈ 22% ∴ The correct answer is 22%.