Peter invested a certain sum of money in a simple interest bond whose value grew to $400 at the end of 3 years and to $ 600 at the end of another 2 years. What was the rate of interest in which he invested his sum?  Choose the correct choice from the following:
A) 100% B) 12.5% C) 67% D) 25% E) 33%
Lets assume the Principal Amount (initial amount invested) to be P   rate of interest to beRand time as T. We need to find R   Now After a time of 3years the principal P amounts to $400 and after a time of 5years ( question says after another 5years so 3+2) P becomes $600.   Formulating the above data   100%mount (100%1) at end of 3years   100%1= P(1 + 3R/100) = 400   100%mount (100%2) at end of 8years   100%2 = P(1 + 5R/100) = 600   Dividing 100%2 by 100%1 we get   (1 + 5R/100)/(1 + 3R/100) = 6/8   after cross multiplication we are left with R =100   Option: 100%
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Peter invested a certain sum of money in a simple interest bond whose value grew to $400 at the end of 3 years and to $ 600 at the end of another 2 years. What was the rate of interest in which he invested his sum?