Question 68

A sum of money becomes double of itself in 50 months when invested on simple interest. What is the rate of interest per annum ?

Solution

Simple Interest = $$\frac{P \times r \times t}{100}$$ where

P = Principal

r = rate of interest

t = time

Since , the amount is doubled , interest = principal

p = $$\frac{p \times r \times 50}{100 \times 12}$$

r = 24%

So , the answer would be option d)24%.

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