Mathematics for FinancePYQ May 20Question 1306 of 512
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A sum of money triples itself in 18\displaystyle 18 years under simple interest, what is the rate of interest p.a.?

Options

A9%\displaystyle 9\%
B9.09%\displaystyle 9.09\%
C11.11%\displaystyle 11.11\%
D13%\displaystyle 13\%
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Correct Answer

✅ Option c — 11.11%\displaystyle 11.11\%

All Options:

  • A9%\displaystyle 9\%
  • B9.09%\displaystyle 9.09\%
  • C11.11%\displaystyle 11.11\%
  • D13%\displaystyle 13\%

Detailed Solution & Explanation

**Derivation of Simple Interest Rate** Given: - Time (t\displaystyle t) = 18\displaystyle 18 years - Let the sum be P\displaystyle P. Amount (A\displaystyle A) = 3P\displaystyle 3P **Step 1: Calculate Simple Interest (SI\displaystyle SI)** SI=A−P=3P−P=2PSI = A - P = 3P - P = 2P **Step 2: Set up the Simple Interest formula** SI=P×R×t100SI = \frac{P \times R \times t}{100} 2P=P×R×181002P = \frac{P \times R \times 18}{100} 2=18R1002 = \frac{18 R}{100} 18R=20018 R = 200 R=20018=1009≈11.11% per annumR = \frac{200}{18} = \frac{100}{9} \approx 11.11\% \text{ per annum} Hence, **Option C** is the correct answer.

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