Question
A sum of money triples itself in 8 years at simple
interest. What is the rate of interest?Solution
Let the principal amount = Rs. P
And rate of simple interest = R% p.a.
After 8 years, it becomes Rs. ‘3P’
So, simple interest earned = 3P – P = Rs. 2P
So, R = (100 × 2P)/(P × 8) = 200/8 = 25%
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