Simple interest · solved example
A sum of money doubles itself in 8 years at simple interest. Find the rate of interest per annum.
- 8%
- 12.5%Correct
- 15%
- 10%
Solution
To double, the interest must equal the principal, so 100% is earned in 8 years, which is 100 ÷ 8 = 12.5% per year.