Question

A sum of money triples itself in four years. Find the rate of Simple Interest.

• A. 30%
• B. 40%
• C. 25%
• D. 50%

Answer 1

The correct option is D 50%

Given, time = 4 years.
Let the sum invested be ₹100.
So, the Amount received after 4 years = ₹300.

We know that,
Principal + Interest = Amount.
Hence, Interest = Amount - Principal = ₹(300-100) = ₹200.

The Simple Interest earned on a sum of ₹P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, ₹200 = $\frac{100\times R\times 4}{100}$
Hence, R = 50%.