Arun invests an amount of ₹4,000 at the rate of 2% simple interest per annum. For how many years did he invest the amount to double his sum?
Answer & explanation
Correct answer: option 3
Principal Invested =4000
Rate of interest = 2% p.a.
If Amount A, required is double = 2*P = 8000
Simple Interest = A-P = 4000 = P*R*T/100 = 4000*2*T/100
2T = 100
T = 50
The correct answer is Option (3) → 50 years