A sum of money invested at simple interest becomes 5 times in 12 years. How many times will it become in 27 years?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e 10.
Let principal = P
It becomes 5P in 12 years → interest = 4P in 12 years
So, SI for 1 year = 4P ÷ 12 = P/3
In 27 years, interest = (P/3) × 27 = 9P
Total amount = P + 9P = 10P
So, it becomes 10 times in 27 years