Discussion

If Re.1 amounts to Rs.9 over a period of 20 years. What is the rate of simple interest?

Answer: D

\[ \text{SI} = \frac{P \times R \times T}{100} \]

Growing from Re. 1 to Rs. 9 means interest of Rs. 8.

\[ 8 = \frac{1 \times R \times 20}{100} = 0.2R \]

\[ R = 40\% \]

The amount is 9 times the principal, so the interest is 8 times it - using 9 here would give 45%.

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