Question

In how many years will a sum of money become sixteen times itself at 30% p.a. simple interest?

• A. 25
• B. 30
• C. 50
• D. 40

Answer 1

Answer:

C. 50

Solution:

Given:

R = 30%

Formula used:

Simple interest = $\frac{PRT}{100}$

Amount = Principal + Simple interest

Calculation:

Let principal be X Rs. and time be taken T years to become it 16X.

⇒ P = X Rs. and A = 16X Rs.

⇒ S.I. = 16X - X = 15X

⇒ $15X = \frac{PRT}{100}$

⇒ $15X =\frac{(X\times{30}\times{T})}{100}$

⇒ 100 = 2T

⇒ T = 50 years.

∴ In 50 years a sum of money will become sixteen times.