In what time will a sum of money double itself @ 20% per annum (p.a) simple interest?
Posted on 15-04-2023
Ques - In what time will a sum of money double itself @ 20% per annum (p.a) simple interest?
(a) 10 years
(b) 5 years
(c) 2 years
(d) 4 years
Solution -
Given,
Principal = P
Amount = 2P (double itself)
S.I = Amount - Principal
S.I = 2P - P
S.I = P
R = 20%
T = ?
S.I = (P×R×T) / 100
P = (P × 20 × T) / 100
T = 100 / 20
T = 5
Therefore,
The time is 5 years.
Hence,
The correct answer is option (b) 5 years.
Thank You