A sum becomes double of itself in $8$ years at simple interest. The rate of interest per annum is

A sum becomes double of itself in $8$ years at simple interest. The rate of interest per annum is
  1. $10\%$
  2. $12.5\%$
  3. $15\%$
  4. $20\%$

Solution

Doubling $\Rightarrow$ SI $= P$. So $\dfrac{P \cdot R \cdot 8}{100} = P \Rightarrow R = \dfrac{100}{8} = 12.5\%$.

Asked in: IMO

Practice more COMPARING QUANTITIES questions on Aicharya