At what rate of simple interest will a sum of money double itself in 8 years?

  1. 20%
  2. 17%
  3. 22%
  4. 15%

Answer (Detailed Solution Below)

Option 1 : 20%

Formula for Simple Interest -

\(SI = \frac{{P \times R \times T}}{{100}}\)

Where,

P = Principal

R = Rate of interest

T = Time period

Let the required rate of interest be X.

According to the question, SI must be equal to 2 × P in order to make the final sum two times the original principal amount after 5 year.

\(\therefore {\rm{P}} = {\rm{}}\frac{{{\rm{P}} \times {\rm{X}} \times 5}}{{100}}\)

⇒ X = 20%

∴ Required rate of interest is of 20%.

Let's discuss the concepts related to Interest and Simple Interest. Explore more from Quantitative Aptitude here. Learn now!


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Updated On: 27-06-2022

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At what rate percent simple interest will a sum be double itself in 8 years?

According to Simple Interest (S.I) formula. . Where P is principal amount, R is rate of interest and T will be time period. Hence, the rate of interest to double a money in 8 years will be 12.5% per annum.

At what interest rate quarterly will an investment double itself after 8 years?

If you want your money to double every 8 years, you will need to earn an interest rate of 9% (72 divided by 8).

At what rate a sum doubles itself in 8 years and 4 months?

So, rate of interest at which a sum doubles itself in 8 year 4 months is 12%.

At what rate of simple interest will a sum of money doubles itself in 4 years?

Hence, R = 5%. Q.