Question

Atul lent a sum of money at simple interest The sum trebled in 16 years. The interest rate was -

• A. 10 percent
• B. 8 percent
• C. 16 percent
• D. 12.5 percent

Answer 1

The correct option is D 12.5 percent

Let the principal (sum lent) ${}^{\prime }{P}^{\prime }=x$.

Amount $=3x$.

$T=16$ years.

Let the Rate of S.I be R.

$A=P(1+\frac{RT}{100})$

$\Rightarrow 3x=x(1+\frac{R\times 16}{100})$

$\Rightarrow 3=1+\frac{16R}{100}$

$\Rightarrow R=\frac{2\times 100}{16}$

$=12.5$

Hence Interest Rate $=12.5$%