Q. A principal becomes 1.5 times itself in 4 years under simple interest. What is the yearly rate?
β
Correct Answer: (B)
12.5%
Explanation: If A = 1.5P then SI = 0.5P = P×R×4/100 ⇒ 0.5 = 4R/100 ⇒ R = (0.5×100)/4 = 50/4 = 12.5%. Others are incorrect.
Explanation by: Mr. Dubey
If A = 1.5P then SI = 0.5P = P×R×4/100 ⇒ 0.5 = 4R/100 ⇒ R = (0.5×100)/4 = 50/4 = 12.5%. Others are incorrect.