At What Rate of Annual Simple Interest, a Sum will Amount to Five Times in 16 Years?
Answer: (3) 25%
Let the principal be = Rs. X and rate = R%
Simple Interest = P x R x T/100
Where, P = principal, R = rate, & T = time.
According to the question,
Simple interest = 5 X – X = 4 X & Time = 16 years
Then, 4 X = X x R x 16/100
4 = 4 R/25
R = 25%
Then, 25% of simple interest, a sum will amount to five times in 16 times.
Hence, the answer is (3) 25%.