Question

A certain sum of money was deposited in the bank and it became two-fold in 10 years, what is the rate of simple interest?

Options

• 8%

• 10%

• 12%

• 13%

Answer 1

10%

Explanation:

Let Principal P = P, Amount = 2P, SI = 2P − P = P

R =?; T = 10 year

`("P"xx"R"xx10)/100="P"` .... `∵ "SI"="PRT"/100`

R = 10%