Multiple choice

A certain sum of money becomes three times of itself in 20 years at simple interest. In how many years does it becomes double of itself at the same rate of simple interest?

  1. 8 years

  2. 10 years

  3. 12 years

  4. 14 years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

If P becomes 3P in 20 years, interest is 2P in 20 years. Rate = (2P/20)/P = 10%. To double (P to 2P), we need interest P, which at 10% takes 10 years.

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