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If a certain sum of money doubles itself in 7 years 8 months at simple interest, then what will be the yearly rate of interest (in %)?

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If a certain sum of money doubles itself in 7 years 8 months at simple interest, then what will be the yearly rate of interest (in %)?
1). \(18\frac{3}{{24}}\)
2). \(13\frac{1}{{23}}\)
3). \(26\frac{2}{{23}}\)
4). 30


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1 answers

34 vote
Answered by on | Votes 34 |

Let the principal = P

Then, Amount = 2P

We know that, A = P + [P × R × $(7\frac{2}{3})$] /100

⇒ 2P = P + [P × R × $(7\frac{2}{3})$] /100

⇒ P = [P × R × $(7\frac{2}{3})$] /100

⇒ 100 = R × $(7\frac{2}{3})$

⇒ 100/ (23/3) = R

⇒ R = $(13\frac{1}{{23}})$

∴ the correct option is 2)

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