Q1. A sum of money becomes double in 5 years at simple interest. The rate of interest per annum is:
Explanation
If the sum doubles, then SI = P (the interest equals the principal). SI = P×R×T/100, so P = P×R×5/100. Therefore R×5 = 100, and R = 20%. General formula: For sum to become n times in T years at SI, Rate = (n-1)×100/T.
