In a certain time, a sum of money becomes five times itself if the rate of the interest is 16% p.a. Then the certain the time (in years) is:
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 25.
| Understanding/Application |
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Principal = P R = 16% Time = T years Interest = I Considering 16% is annual rate of Interest I = (P × R × T)/100 We want to get 5P, which is the same as saying that I = 4P because that would mean the total amount will be P + 4P = 5P So 4P = (P × R × T)/100 Divide by P both sides and substitute R as 16 4 = (16 × T)/100 |
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Multiply by 100 on both sides 400 = 16 × T Divide by 16 on both sides to get T T = 400/16 T = 25 years |