Question : The time required for a sum of money to amount to three times itself at 8% simple interest p.a. will be:
Option 1: 35 years
Option 2: 25 years
Option 3: 30 years
Option 4: 20 years
Correct Answer: 25 years
Solution :
Given: Rate is 8%
Let the Principle be P.
It amounts to 3 times of itself.
Simple interest = 3P – P = 2P
We know, Simple interest $= \frac{\text{Principal × Rate × Time}}{100}$
⇒ $2P =\frac{P×8×\text{Time}}{100}$
⇒ Time = 25 years
Hence, the correct answer is 25 years.
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