Q.At what annual interest rate will a principal amount become three times its original value in 25 years? (a) 6% (b) 8% (c) 10% (d) 12.5%
Answer: B
Let’s assume the principal amount \((p)=x\) rupees
Interest amount \((I)= (3x-x)\) rupees \(=2x\) rupees
Time \((t)=25\) years

\(\therefore\) Rate of interest \((r)= \cfrac{100\times I}{pt} \%\)

\(= \cfrac{100\times 2x}{x\times 25} \%\)

\(= 8 \%\)

Similar Questions