Multiple choice

In how many years will a sum of money double itself at 18.75% per annum simple interest?

  1. 5 years 4 months

  2. 6 years 4 months

  3. 5 years 3 months

  4. 6 years 6 months
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For money to double, simple interest must equal the principal. SI = P * R * T / 100. P = P * 18.75 * T / 100. T = 100 / 18.75 = 10000 / 1875 = 5.333 years. 0.333 years is 4 months. So 5 years 4 months.

AI explanation

To double a sum at simple interest, the interest earned must equal the principal, meaning SI = P. Using the formula Time = (100 x SI)/(P x R) and substituting SI with P, we get Time = 100/18.75. This calculates to 16/3 years, which is 5 years and 4 months.

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