Multiple choice

A farmer took a loan from a bank at 7.5% simple interest per annum. In how many months will the interest amount become double the principal?

  1. 320 months

  2. 325 months

  3. 345 months

  4. 385 months

  5. 410 months
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple interest I = (P * R * T) / 100. We want I = 2P. So, 2P = (P * 7.5 * T) / 100. Solving for T in years gives T = 200 / 7.5 = 26.66 years. Converting to months: 26.66 * 12 = 320 months.

AI explanation

Using the simple interest formula, R = 100 * SI / (P * T), where the interest is double the principal (SI = 2P). Substituting the values gives 7.5 = (100 * 2P) / (P * T), which simplifies to 7.5 = 200 / T. Solving for T gives T = 200 / 7.5 = 26.66 years, which is exactly 320 months when multiplied by 12.

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