Multiple choice

A sum of money becomes exactly two times its value at 6.25% rate of simple interest in

  1. 24 years

  2. 20 years

  3. 16 years

  4. 12 years

  5. 10 years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest formula: SI = (P*R*T)/100. To double, SI = P. P = (P * 6.25 * T) / 100. 1 = 6.25 * T / 100. T = 100 / 6.25 = 16.

AI explanation

For a sum to become two times its value, the simple interest earned must equal the principal. Using the formula where time equals 100 divided by the rate, we substitute the 6.25 percent rate. This gives 100 divided by 6.25, which results in 16 years.

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