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Question 11 Mark
In how many years will a certain sum become 3 times itself at 25% per annum under simple interest?
  1. 5
  2. 8
  3. 12
  4. 6
Answer
  1. 8
Solution:

Amount = 3 times the sum = 3P

Simple interest (I) = Amount - Sum = 3P - P = 2P

Let the sum (P) be x.

Then, simple interest (I) = 2x

Rate (R) = 25%

Time = T

$\text{I}=\frac{\text{P}\ \times\ \text{R}\ \times\ \text{T}}{100}$

$\Rightarrow\text{T}=\frac{100\ \times\ \text{I}}{\text{P }\times\text{ R}}$

$=\frac{100\ \times\text{ 2x}}{\text{x } \times\ 25}$

$=8\%$

Hence, the correct option is (b).
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