Question

How many years will be required to double the principle amount of the Rs 5000/- by Simple interest at the rate of 4 p. c. p. a. ?​

Answer 1

Answer:

The time taken to double the amount with simple interest at rate of 4% is 25 years.

Step-by-step explanation:

Rate of interest, r = 4% = 0.04

Principal Amount, P = Rs. 5000/-

Final Amount, A = 2 × Principal Amount = Rs 10,000/-

The time in years is t

From the formula for simple interest, A = P(1 + rt)

we get

10000 = 5000( 1 + 0.04t)

⇒ 2 = 1 + (0.04 t)

⇒ t = = 25 years.

The time taken to double the amount with simple interest at rate of 4% is 25 years.