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Question : If a certain sum of money becomes double of itself in 3 years and 6 months at simple interest, then what will be the annual rate of interest?

Option 1: 22.5 percent

Option 2: 28.57 percent

Option 3: 30.53 percent

Option 4: 26.57 percent


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: 28.57 percent


Solution : Given,
The sum of money becomes double itself in 3 years and 6 months.
Time in years = $3+\frac{6}{12}$ = 3.5 years
Let the rate be $r$.
According to the question,
The amount becomes double
⇒ Simple interest is equal to the principal P
Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
⇒ $P=\frac{P×r×3.5}{100}$
⇒ $r = \frac{100}{3.5}$
$\therefore r =28.57$%
Hence, the correct answer is 28.57%.

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