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    Question

    A invests a sum at 8% simple interest. After 5 years the

    amount becomes 1.4 times the principal. Find the rate of interest used.
    A 10% Correct Answer Incorrect Answer
    B 12% Correct Answer Incorrect Answer
    C 8% Correct Answer Incorrect Answer
    D 18% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Amount = P(1 + rt/100) 1.4P = P(1 + 5r/100) 1.4 = 1 + 5r/100 0.4 = 5r/100 r = 8%

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