Q.What should be the annual simple interest rate so that the principal increases by 75% in 6 years? (a) 8% (b) 20% (c) 12.5% (d) 15%
Answer: C
Let’s assume the principal amount \((p)=x \) rupees
\(\therefore\) Total interest \((I)=x\times \cfrac{75}{100} \) rupees = \(\cfrac{3x}{4}\) rupees

Time \((t)=6\) years
\(\therefore\) Rate of interest \((r)=\cfrac{100\times I}{pt} \%\)
\(=\cfrac{\cancel{100}25\times \cfrac{\cancel3x}{\cancel4}}{x\times \cancel6 2} \%\)
\(=12.5\%\)
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