Multiple choice

Consider the following statements: If a sum of money is lent at simple interest, then the 1. Money gets doubled in 5 years if the rate of interest is $16 \displaystyle \frac{2}{3}$% 2. Money gets doubled in 5 years if the rate of interest is 20% 3. Money becomes four times in 10 years if it gets doubled in 5 years Of these statements

  1. 1 and 3 are correct

  2. 2 alone is correct

  3. 3 alone is correct

  4. 2 and 3 are correct
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

1: SI = P*R*T/100. For doubling, SI = P. P = P*R*5/100 => R = 20%. Statement 1 is false. 2: R = 20% leads to doubling in 5 years. Statement 2 is true. 3: If it doubles in 5 years, it becomes 4 times in 15 years (not 10). Statement 3 is false.

AI explanation

Using the Simple Interest formula for statement 1, the amount becomes Principal times 1 plus 16.67 times 5 divided by 100, resulting in 1.83 times the principal, so statement 1 is false. For statement 2, the amount becomes Principal times 1 plus 20 times 5 divided by 100, resulting in exactly twice the principal, so statement 2 is true. For statement 3, if the money doubles in 5 years, the interest equals the principal, so in 10 years the interest is twice the principal and the total amount is 3 times the principal, making statement 3 false. Therefore, statement 2 alone is correct.

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