In how many years, an amount becomes three times of itself, if simple interest is calculated at a rate of 10% per annum?
Answer & explanation
Correct answer: option 2
Let principal = P
Sum become 3 times of itself. So , Amount = 3P
Simple interest = 3P - P = 2P
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
2P = \(\frac{P ×10× Time }{100}\)
Time = 20 years