Multiple choice

In how many years will Rs. 2 lakh double itself at 11.5% per annum simple interest?

  1. Less than 8

  2. Between 8 and 9

  3. 9.3

  4. 10.5
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

For money to double at simple interest, the interest earned must equal the principal. Interest = P * R * T / 100. So P = P * 11.5 * T / 100. T = 100 / 11.5 = 8.69 years. This is between 8 and 9.

AI explanation

Using the simple interest formula, we know that for the sum to double, the simple interest earned must equal the principal, meaning SI = P. The formula for time is T = (100 * SI) / (P * R). Substituting SI = P, the time becomes T = 100 / R, which gives T = 100 / 11.5. Calculating this value gives approximately 8.7 years, which falls between 8 and 9.

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