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Related The time required for a sum of money to amount to five times itself at 16% simple interest p.a. will bea)25 yearsb)20 yearsc)15 yearsd)18 yearsCorrect answer is option 'A'. Can you explain this answer?
GIVEN:
Rate of Interest = 16%
FORMULA USED:
Simple Interest = (P × R × T)/100
CALCULATION:
Let Principal = x
Amount = 5x
Simple Interest = 5x - x=4x
Simple Interest = (P × R × T)/100
4x = (x × 16 × T)/100
T = 25 years.
Alternate method:
Principal (100) → amount (500)
So, interest = 500 - 100 = 400 @ 16%
Therefore, required time = 400/16 = 25 years
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A certain sum of money becomes...
Updated On: 27-06-2022
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Answer : D
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