Question
A sum of money becomes three times itself in 12 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 12 years, it becomes Rs. ‘3P’ So, simple interest earned = 3P – P = Rs. 2P So, R = (100 × 2P)/(P × 12) = 200/12 = 16(2/3)%
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