In how much time will an investment of Rs. 50,000 at 5 percent simple interest be doubled, if the interest is added to the principal after every 10 years?

A16 and two thirds years ✓ Correct

B15 and two thirds years

C17 and two thirds years

D18 and two thirds years

Correct answer: (A) 16 and two thirds years

Explanation

The investment doubles in 16 and 2/3 years.

yearly interest on 50000 at 5% = 2500.

in 10 years interest = 25000, principal becomes 75000.

remaining 25000 needed at 5% of 75000 = 3750 per year.

25000 / 3750 = 6 and 2/3 years.

total time = 10 + 6 and 2/3 = 16 and 2/3 years.

Want more like this? Create a free account to practise a full test, track your progress, and get spaced-repetition review.