A sum is invested at simple interest. If the rate of interest is 20% per annum, then in how much time will it become double of itself?
Answer & explanation
Correct answer: option 4
Let initial sum = P
Required amount = 2P
Simple interest = 2P - P = P
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
P = \(\frac{P× 20 × Time }{100}\)
Time = 5 years