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If a certain sum of money becomes double at simple interest in 12 years, what would be the rate of interest per annum?
  • a)
    8.33
  • b)
    10
  • c)
    12
  • d)
    14
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
If a certain sum of money becomes double at simple interest in 12 year...
 100/12 = 8.33%
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Most Upvoted Answer
If a certain sum of money becomes double at simple interest in 12 year...
Given information:
- Sum of money becomes double at simple interest in 12 years

To find:
- Rate of interest per annum

Solution:
Let the principal be P.
After 12 years, the amount becomes 2P.
Since the interest is simple interest, the interest earned each year is the same.
Let the rate of interest per annum be R%.

Therefore, the interest earned in 12 years = P * R% * 12

According to the given information, the amount after 12 years = P + P * R% * 12 = 2P

Simplifying, we get:
P(1 + 12R/100) = 2P
1 + 12R/100 = 2
12R/100 = 1
R = 8.33%

Therefore, the rate of interest per annum is 8.33%.

Answer: Option A) 8.33
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If a certain sum of money becomes double at simple interest in 12 years, what would be the rate of interest per annum?a)8.33b)10c)12d)14Correct answer is option 'A'. Can you explain this answer?
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