In how much time will a sum of money double itself at 12% p.a. simple interest?
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. 8 years 4 months.
Given:
Rate = 12%
Formula used:
(n - 1) = RT/100 ----- (1)
where n = times the sum of money, R = rate and T = time
Calculations:
⇒ (2 - 1) = (12 × T)/100
⇒ 1 = 12T/100
⇒ T = 100/12
⇒ T = 8(1/3) years or 8 years 4 months