Question : If a sum triples in 4 years at simple interest, find the time that it would take to become 5 times itself at the same rate of interest.
Option 1: 6 years
Option 2: 8 years
Option 3: 5 years
Option 4: 3 years
Correct Answer: 8 years
Solution :
Simple interest = $\frac{\text{Principal × Rate × Time}}{100}$
Let the sum invested be P.
The amount received after 4 years = 3P
Interest = Amount – Principal = 3P – P = 2P
⇒ 2P = $\frac{\text{P × Rate × 4}}{100}$
⇒ Rate = 50%
The amount to become 5 times = 5P
Interest = Amount – Principal = 5P – P = 4P
⇒ 4P = $\frac{\text{P × 50 × Time}}{100}$
⇒ Time required = 8 years
Hence, the correct answer is 8 years.
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