Question : At what annual rate (rounded off to the nearest integer) of simple interest will a sum of money become five times its initial value in 18 years?
Option 1: 18%
Option 2: 20%
Option 3: 22%
Option 4: 24%

Question

Question : At a certain annual rate (rounded off to the nearest integer) of simple interest, a sum of money becomes nine times its original value in 21 years. By how much does the rate of interest change if the same sum of money has to become 12 times its original value in 25 years?

154 Views

Answer 1

Correct Answer: 22%

Solution : Given. Time = 18 years
Let the principal be $x$ .
The sum of money after 18 years = $5 x$
Simple interest = $5 x - x = 4 x$
Simple interest = $\frac{Principal × Rate × Time}{100}$
$\Rightarrow 4 x = \frac{x \times Rate \times 18}{100}$
$∴$ Rate = $\frac{400}{18} = 22.22 \approx 22$ %
Hence, the correct answer is 22%.

Exams

Colleges

Predictors

Resources

Quick links

Exams

Colleges & Courses

Predictors

Resources

Exams

Colleges

Predictors & E-Books

Resources

Engineering Preparation

Medical Preparation

Online Courses

Products

Exams

Colleges

Resources

Exams

Colleges

Predictors & Articles

Resources

Exams

Colleges

Predictors

Resources

Exams

Colleges

Upcoming Events

Resources

Exams

Colleges

Resources

Quick Links

Top Streams

Specializations

Resources

Top Providers

Exams

Colleges

Resources

Diploma Colleges

Exams

Colleges

Resources

Exams

Resources

Top Courses & Careers

Colleges

Exams

Upcoming Events

Resources

Other Exams

Exams

Colleges

Top Countries

Student Visas

Exams

Top Schools

Products & Resources

NCERT Study Material

Question : At what annual rate (rounded off to the nearest integer) of simple interest will a sum of money become five times its initial value in 18 years?Option 1: 18%Option 2: 20%Option 3: 22%Option 4: 24%

Related Questions

Know More about

Upcoming Exams

Trending Articles around SSC CHSL

Download the Careers360 App on your Android phone

Sign In/Sign Up

Question : At what annual rate (rounded off to the nearest integer) of simple interest will a sum of money become five times its initial value in 18 years?
Option 1: 18%
Option 2: 20%
Option 3: 22%
Option 4: 24%