Multiple choice

In how many years will the simple interest on a sum of money be equal to the principal at the rate of $\displaystyle 16\frac{2}{3}$% per annum ?

  1. $4$
  2. $5$
  3. $6$
  4. $8$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest I = P*r*t/100. We want I = P. So P = P * (50/3) * t / 100. 1 = (50/300) * t = t/6. Thus t = 6 years.

AI explanation

If the simple interest equals the principal, the amount becomes exactly twice the principal. Using the simple interest formula, P = (P * 50/3 * T) / 100. Solving for Time, T = 300 / 50, which is 6 years.

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