Q.What should be the annual interest rate for a principal amount to double in 6 years? (a) 12% (b) 12\(\cfrac{1}{2}\)% (c) 16% (d) 16\(\cfrac{2}{3}\)%
Answer: D
For a principal amount to double, it means: Principal \((p) = x\) rupees
Interest amount \((I) = x\) rupees
Time \((t) = 6\) years

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

\(=\cfrac{100\times x}{x\times 6}\)

\(=16\cfrac{2}{3}\%\)

So, the annual interest rate should be 16\( \frac{2}{3} \)%.
Similar Questions