A certain sum of money becomes three times of itself in 20 years at simple interest. In how many years does it become double of itself at the same rate of simple interest?
- AOption (a)
8 Yrs
- BOption (b)
10 Yrs
- COption (c)
12 Yrs
- DOption (d)
14 Yrs
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Correct answer
10 Yrs
Why this answer is correct
Given
A certain sum of money becomes three times of itself in 20 years at simple interest.
Concept used
Principal + interest = Amount
Calculation
Let the principal be P
Amount = 3P
Interest = 3P - P
Interest = 2P
Rate =
Rate =
Rate = 10%
Now let after t years the amount becomes double
Si = 2p - p = p
Time =
Time =
Time = 10 years.