Question

A sum of money becomes five times of itself, the rate of simple interest being 16% per annum. What is the time period?
1. 30 years
2. 20 years
3. 25 years
4. 40 years

Answer 1

Correct Answer - Option 3 : 25 years

Given:

Rate of interest(r%) = 16 %

Concept:

SI = (P × r × t)/100       [P = Principle, r = rate of interest, t = time]

Calculation:

Let, Principle (P) = x

SI = 4x

Time = t

According to the question,

⇒ 4x = (x × 16 × t)/100

⇒ (4x × 100)/( x × 16) = t

⇒ 25 = t

⇒ required time (t) = 25 years