Question

The simple interest earned on a certain amount is double the amount when invested for 10 years. What is the interest rate being offered?

Answer 1

Answer: 10%

Step-by-step explanation:

The formula to calculate the simple interest (I) is given by :-

`I=Prt---------(1)`

Final amount :
`A=P+I---------(2)`

Given : The simple interest earned on a certain amount is double the amount when invested for 10 years.

i.e A = 2P

Put this in equation (2), we get

`2P=P+I\\\\\Rightarrow\ I=P`

Put the value of I in (1), we get

`P=Prt\\\\\Rightarrow\ rt=1`

Since t=10 years {given} , then

`r(10)=1\\\\\Rightarrow\ r=(1)/(1</strong>0)=0.1`

In percent ,
`r=0.1*10=10\%`

Hence, the interest rate is being offered = 10%