In what time will a sum of money double itself at the rate of 8 percent per annum simple interest?

A10.5 years

B12.5 years ✓ Correct

C9.5 years

D11.5 years

Correct answer: (B) 12.5 years

Explanation

The sum doubles in 12.5 years.

To double, interest earned = principal P.

SI = P x R x T / 100, with SI = P.

P = P x 8 x T / 100, so T = 100 / 8.

T = 12.5 years.

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