If a sum of money becomes double in 12 years at simple interest, what is the rate of interest per annum on the investment?
\(8\frac{1}{3}\)%
\(8\dfrac{1}{3}\)% is correct.
When the sum doubles, the interest earned equals the principal \(P\).
Simple interest \(= \dfrac{P \times R \times T}{100}\), so \(P = \dfrac{P \times R \times 12}{100}\).
\(R = \dfrac{100}{12} = \dfrac{25}{3} = 8\dfrac{1}{3}\)% per annum.
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