Q.At what annual percentage rate will a certain amount of money double in 16 years? (a) 5% (b) 8\(\frac{1}{2}\)% (c) 6\(\frac{1}{4}\)% (d) 8\(\frac{1}{4}\)%
Answer: C
Let the principal amount \((p) = x\) rupees
Time \((t) = 16\) years
Interest \((I) = x\) rupees
∴ Rate of interest \((r) = \cfrac{100 \times I}{p \times t}\)
\(=\cfrac{100×x}{x×16} \%=\cfrac{25}{4}\%=6\cfrac{1}{4}\%\)
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