An amount becomes double in 8 years on simple interest. In how many years would Rs.25,000 become Rs.1,00,000 with the same rate of interest?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is Option 4 i.e. 24.
We know that,
S.I. = (P × R × T)/100
here, S.I. = Simple Interest, P = Principal, R = Rate, and T = Time
As per the question,
⇒ P = (P × R × 8)/100
⇒ R = 12.5%
Rs. 25,000 becomes Rs. 1,00,000
So, simple interest is 100000 - 25000 = Rs.75000
So, as per the formula
⇒ 75000 = (25000 × 12.5 × T)/100
⇒ T = 8 × 3 = 24 years