JIPMAT 2022 (QA) - A sum becomes double in 10 years, then what is the annual rate of simple interest? | PYQs + Solutions

JIPMAT 2022

Arithmetic

Simple & Compound Interest

Conceptual

A sum becomes double in 10 years, then what is the annual rate of simple interest?

10%

20%

Correct Option: 3

1) For Simple Interest, if sum becomes double:

\newline

Final amount = 2 × Principal

P+\frac{Prt}{100}=P(1 + \frac{rt}{100}) = 2P

2) Given

t = 10

years:

1 + \frac{10r}{100} = 2

\frac{10r}{100} = 1

r = \frac{100}{10}

r = 10

Therefore, the annual rate of simple interest is 10%.

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JIPMAT 2022 (QA) PYQs

A sum becomes double in 10 years, then what is the annual rate of simple interest?

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