he simple interest earned on a certain amount is double the money when invested for 15 years. What interest rate is offered?Options 26.66% 12% 30% 13.33%
Question
he simple interest earned on a certain amount is double the money when invested for 15 years. What interest rate is offered?Options 26.66% 12% 30% 13.33%
Solution
The problem states that the simple interest earned on a certain amount is double the money when invested for 15 years. This means that the interest earned is equal to the principal amount.
The formula for simple interest is I = PRT/100, where: I = Interest P = Principal amount (the initial amount of money) R = Rate of interest T = Time the money is invested for
Given that I = P and T = 15 years, we can substitute these values into the formula:
P = P * R * 15 / 100
Solving for R, we get:
R = 100 / 15 = 6.66 (repeating)
However, since the interest is double the principal, we need to double this rate:
R = 2 * 6.66 = 13.33%
So, the interest rate offered is 13.33%.
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