Question

In what time a sum of money becomes 3 times of itself at simple interest rate of 10% per annum?

• A. 18 years
• B. 20 years
• C. 22 years
• D. 24 years

Answer 1

Answer:

B. 20 years

Let Principal be ‘p’

A sum of money becomes 3 times of itself,

Amount, A = 3p

SI = A - p = 2p

$⇒2p=\frac{(p\times{10}\times{t})}{100}$

$⇒\frac{200}{10}$ = t = 20 years

∴ In 20 years, a sum of money becomes 3 times of itself.