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A sum of money doubles itself in 8 years at simple interest. What is the annual rate of interest (in %)?

Competition practiceSimple & Compound Interest
  • A15
  • B12
  • C10
  • D12.5

Step-by-Step Solution

For the sum to double, the interest equals the principal, so R = 100 ÷ 8 = 12.5% per annum.
Answer: D) 12.5

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