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A sum becomes double in 10 years, then what is the annual rate of simple interest?

Solution

✅ Correct Option: 3

For Simple Interest, if sum becomes double:

Final amount = 2 × Principal

P+Prt100=P(1+rt100)=2PP+\frac{Prt}{100}=P(1 + \frac{rt}{100}) = 2P

Given t=10t = 10 years:

1+10r100=21 + \frac{10r}{100} = 2

10r100=1\frac{10r}{100} = 1

r=10010r = \frac{100}{10}

r=10r = 10

Therefore, the annual rate of simple interest is 10%.

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