In how many years will a sum of money become double of itself at 12% per annum on simple interest ?
Answer & explanation
Correct answer: option 3
Simple interest = \(\frac{P × R ×T}{100}\)
Amount = Principal + SI
Let us consider that principal = P
So, Amount = 2 P
SI = 2P - P = P
P = \(\frac{P × 12 ×T}{100}\)
T = \(\frac{100}{12}\)
T = \(\frac{25}{3}\)
The correct answer is option (3) : $8\frac{1}{3}$