Shortcut Trick
For Simple Interest, use the formula: (n1 − 1) / T1 = (n2 − 1) / T2
Where n is the multiplier and T is the time.
⇒ (2 − 1) / 8 = (4 − 1) / T2
⇒ 1 / 8 = 3 / T2
⇒ T2 = 8 × 3 = 24 years.
∴ The correct answer is 24 years.
Alternate Method
Given:
Time (T1) = 8 years
Amount (A1) = 2 × Principal (P)
Target Amount (A2) = 4 × Principal (P)
Calculations:
⇒ Simple Interest (SI1) = A1 − P = 2P − P = P
⇒ This interest P is earned in 8 years.
⇒ For the sum to become 4 times, Interest (SI2) = A2 − P = 4P − P = 3P
⇒ In Simple Interest, the interest earned is directly proportional to time.
⇒ Time required (T2) = (SI2 / SI1) × T1
⇒ T2 = (3P / P) × 8
⇒ T2 = 3 × 8 = 24 years.
∴ The correct answer is 24 years.
Additional Information
Simple Interest Formula
The formula is SI = (P × R × T) / 100, where P is Principal, R is Rate per annum, and T is Time in years.
Rate of Interest Calculation
If a sum doubles in T years at SI, the rate R = 100 / T. In this case, R = 100 / 8 = 12.5%.
Amount in Simple Interest
The total Amount (A) is the sum of the Principal and the Interest earned: A = P + SI.
Proportionality Rule
In Simple Interest, the interest earned for any period is constant, meaning Interest is directly proportional to the Time duration.