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If a sum of money double itself in 4 yea...

If a sum of money double itself in 4 years at S.I. then the rate of interest per annum is?

A

a. 25%

B

b. 100%

C

c. 50%

D

d. none of these

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The correct Answer is:
To solve the problem of finding the rate of interest per annum when a sum of money doubles itself in 4 years at Simple Interest (S.I.), we can follow these steps: ### Step-by-Step Solution: 1. **Identify the Principal and Final Amount**: - Let the principal amount be \( P \). - If the amount doubles in 4 years, the final amount will be \( 2P \). 2. **Calculate the Simple Interest (S.I.)**: - The Simple Interest earned over 4 years can be calculated as: \[ \text{S.I.} = \text{Final Amount} - \text{Principal} = 2P - P = P \] 3. **Use the Simple Interest Formula**: - The formula for Simple Interest is: \[ \text{S.I.} = \frac{P \times R \times T}{100} \] - Here, \( P \) is the principal, \( R \) is the rate of interest per annum, and \( T \) is the time in years. 4. **Substitute the Known Values**: - We know that: - \( \text{S.I.} = P \) - \( T = 4 \) years - Substituting these values into the formula gives: \[ P = \frac{P \times R \times 4}{100} \] 5. **Simplify the Equation**: - We can cancel \( P \) from both sides (assuming \( P \neq 0 \)): \[ 1 = \frac{R \times 4}{100} \] 6. **Solve for \( R \)**: - Rearranging the equation to find \( R \): \[ R \times 4 = 100 \] \[ R = \frac{100}{4} = 25 \] 7. **Conclusion**: - The rate of interest per annum is \( 25\% \). ### Final Answer: The rate of interest per annum is **25%**.
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