In how many years will a sum of money double itself at 12.5% p.a., at simple interest? |
10 years 4 years 6 years 8 years |
8 years |
The correct answer is Option (4) → 8 years For a sum to double at simple interest, the interest earned must equal the principal. Using the formula: $\text{SI} = \frac{P \times R \times T}{100}$ Set SI = P: $\frac{P \times 12.5 \times T}{100} = P$ Cancel PPP: $\frac{12.5 \times T}{100} = 1$ $T = \frac{100}{12.5} = 8T=12.5100=8$ Correct answer: 8 years |