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PolarNik [594]
3 years ago
7

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

offered?
Business
1 answer:
asambeis [7]3 years ago
3 0

Answer: 10%

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=\dfrac{1}{10}=0.1

In percent , r=0.1\times10=10\%

Hence, the interest rate is being offered = 10%

     

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