In what time does a sum of money amount to twice of itself at the simple interest of 25% per annum?
Answer & explanation
Correct answer: option 2
A sum of money amount to twice of itself at the simple interest of 25% per annum.
Let principal = P & Amount = 2P
Amount = Principal + Interest
2P = P + interest
Interest = 2P - P = P
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
P = \(\frac{P × 25 × Time }{100}\)
Time = 4 years