Practice Quiz

ICE Special Agent Exam Prep

Category - Math - Hard

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At simple interest, a sum doubles in 20 years. The rate of interest per annum is ____
  1. 5%
  2. 10%
  3. 12%
  4. 20%
Explanation
Answer A: Simple Interest I = P x R x T . Sum doubles in 20 years. So interest I = P;
P=PxRxT R =1/T = (1/20 ) % = 5%

Key takeaway: Simple Interest is charged only on the original principal, not on the interest accrued. In compound interest, interest is given on interest also besides on the principle amount.
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