Question

Determine the time duration for which the deposit amount becomes thrice of itself, if the rate of interest given by the bank is 10%.
Options
5 years
10 years
20 years
15 years
​

Answer 1

Answer:

20 % is the correct answer for this question

Answer 2

The required period is 20 years.

Given:

Rate of interest $=10\%$

The deposited amount becomes 3 times.

To Find:

Time duration in which the amount becomes thrice the initial amount.

Step by step explanation:

We know that,

Simple Interest $= \frac{Principle\times rate \ of \ interest\times time \ period}{100}$

The amount becomes thrice, which means the interest gained will be the difference between the final amount and the initial deposited amount.

Let the deposited amount is P.

$S.I = 3P-P=2P$

Let the period be T.

$S.I=\frac{P\times R\times T}{100} \\\\\implies 2P= \frac{P\times 10\times T}{100}\\ \\\implies T=20\ years$

Hence, the required time is 20 years.