Multiple choice

A sum of money triples itself, the rate of simple interest being 5% per annum, What is the time period?

  1. 40 years

  2. 30 years

  3. 20 years

  4. 60 years
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple Interest = Principal × Rate × Time. For money to triple, interest must be 200% of principal. So 200% = 5% × T, giving T = 40 years. Option B gives 150% (not enough), C gives 100%, and D gives 300%.

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