Multiple choice

The time required for a sum of money to amount to three times its original value at 8% simple interest p.a. will be?

  1. 35 years

  2. 25 years

  3. 30 years

  4. 20 years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula: I = P * R * T / 100. Amount = P + I = 3P, so I = 2P. 2P = P * 8 * T / 100. 2 = 8T / 100. T = 200 / 8 = 25 years.

AI explanation

To become three times its original value, the total amount must be 3P, meaning the simple interest earned must equal 2P. Using the simple interest formula SI = (Principal * Rate * Time) / 100, we set up the equation 2P = (P * 8 * Time) / 100. Dividing both sides by P gives 2 = (8 * Time) / 100. Solving for Time yields Time = 200 / 8 = 25 years. The result is 25 years.

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