Multiple choice

A certain sum, lent at a certain rate of interest per annum, under simple interest becomes 1.625 times itself in five years. In how many years will the total interest accrued be equal to four times the sum?

  1. 20

  2. 24

  3. 28

  4. 32
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Amount = 1.625P in 5 years. Interest = 0.625P. Rate = (0.625P * 100) / (P * 5) = 12.5%. We want interest = 4P. Time = (4P * 100) / (P * 12.5) = 400 / 12.5 = 32 years.

AI explanation

If the sum becomes 1.625 times itself in five years under simple interest, the total interest accrued is 0.625 times the principal. This means the annual interest is 0.625P divided by 5, which equals 0.125P, indicating an annual interest rate of 12.5 percent. To find when the total interest equals four times the principal, we divide 4P by 0.125P, which gives 32 years.

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