Question
A certain amount of money, when invested at a simple interest rate of 'r%' per annum, grows to 6 times its original value in 24 years. Determine the value of 'r'.
Solution
According to the given conditions, Let the initial investment be Rs. p. The interest earned in 24 years = (6p – p) = Rs. 5p. Therefore, using the formula for simple interest = (p×r×24)/100=5p Solving for 'r': r = (5p×100)/(p×24) = 20 Hence, the value of 'r' = 20.
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