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Question : At what time does a sum of money amount to twice itself at the simple interest of 25% per annum?

Option 1: 8 years

Option 2: 2 years

Option 3: 4 years

Option 4: 10 years


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 7th Jan, 2024

Correct Answer: 4 years


Solution : Given: A sum of money amounts to twice itself at the simple interest of 25% per annum.
Let the principal be INR $x$.
According to the question,
Total amount $=2x$
$\therefore$ Simple interest = $2x-x=x$
Also, We know, Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
So, $x=\frac{x\times 25\times \text{Time}}{100}$
⇒ Time $=4$ years
Hence, the correct answer is 4 years.

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