A sum of money becomes thrice of itself in 20 years. Find the simple interest rate per annum? Option 1: 6.66 % Option 2: 12 % Option 3: 10 % Option 4: 8.33 %

Answer: 10 %. Solution: A sum of money becomes thrice of itself in 20 years means if the principal is P, the final amount after 20 years is 3P. The interest earned is: Simple Interest = Final Amount - Principal Simple Interest = 3P - P = 2P The simple interest formula is: SI = (P x R x T)/100 Where SI is Simple Interest, P is Principal, R is Rate per annum, and T is Time in years. Given: - SI = 2P - T = 20 years - P = P Substituting into the formula: 2P = (P x R x 20)/100 2 = (R x 20)/100 200 = R x 20 R = 200/20 R = 10 Therefore, the simple interest rate per annum is 10%.

Arithmetic

Simple & Compound Interest

Easy

A sum of money becomes thrice of itself in 20 years. Find the simple interest rate per annum?

6.66 %

12 %

10 %

8.33 %

✅ Correct Option: 3

A sum of money becomes thrice of itself in 20 years means if the principal is $P$ , the final amount after 20 years is $3P$ .

The interest earned is:

Simple Interest = Final Amount - Principal

Simple Interest = $3P - P = 2P$

The simple interest formula is:

$SI = \frac{P \times R \times T}{100}$

Where $SI$ is Simple Interest, $P$ is Principal, $R$ is Rate per annum, and $T$ is Time in years.

Given:

$SI = 2P$
$T = 20$ years
$P = P$

Substituting into the formula:

$2P = \frac{P \times R \times 20}{100}$

$2 = \frac{R \times 20}{100}$

$200 = R \times 20$

$R = \frac{200}{20}$

$R = 10$

Therefore, the simple interest rate per annum is 10%.

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