Multiple choice

Directions: Select the correct alternative from the given choices. A certain sum lent at a certain rate of interest per annum, under simple interest, becomes 1.375 times itself in three years. After how many years will the total interest accrued be equal to twice the sum?

  1. 14

  2. 16

  3. 17

  4. 19
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Sum becomes 1.375S in 3 years, so interest = 0.375S. Rate = (0.375S * 100) / (S * 3) = 12.5% per annum. To have interest = 2S, 2S = (S * 12.5 * T) / 100. T = 200 / 12.5 = 16 years.

AI explanation

The sum becoming 1.375 times itself means the total interest accrued equals 0.375 times the principal over three years, making the annual interest rate 12.5%. For the total interest to equal twice the principal, the interest must reach 200% of the principal. Dividing 200 by 12.5 shows the total interest will equal twice the sum in 16 years.

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