A sum becomes 2.5 times in 10 years under simple interest. Find the rate.

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Accepted Answer

1. Let principal be $P$. Final amount = $2.5P$.

2. Simple interest formula: $	ext{Amount}=P\left(1+\dfrac{rt}{100}ight)$. So $1+\dfrac{r\cdot10}{100}=2.5$.

3. Solve: $\dfrac{10r}{100}=1.5\Rightarrow r=\dfrac{1.5	imes100}{10}=15\%$.

4. Rate = **15%**, so correct option is **(c)**.

FINAL_ANSWER: c

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Answer

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