Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

Numerical Ability

Topic

Simple Interest

Question:

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

Options:

10 years

4 years

8 years

2 years

Correct Answer:

4 years

Explanation:

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