In how many least number of complete years a sum of money become more than four times of itself at the rate of 50 percent per annum on simple interest?
Answer & explanation
Correct answer: option 2
Let principal = 1R
Here, If principal becomes 4 times, then
Amount = 4R
S.I. = 4R - 1R = 3R
Total Rate of Interest = \(\frac{3R}{1R}\) × 100 = 300%
Formula:
Total Rate of Interest = Rate p.a. × Time
Hence,
300% = 50% × Time
Time = \(\frac{300}{50}\) = 6 years
The sum of money becomes 4 times in 6 years. Therefore, the sum becomes more than 4 times in 7 years.