Question

In how many years, a sum of money will be three and half times of itself at 16% per annum simple interest

Answer 1

Solution :

Let the principal( p ) = Rs x

Amount ( A ) = 3½ × p = 3.5x

Simple interest ( I ) = A - p

= 3.5x - x

= 2.5x

Rate of interest ( r ) = 162/3 = 50/3 %

Let the time = t years

We know that ,

( ptr )/100 = I

=> t = ( 100 × I )/( pr)

= ( 100 × 2.5x )/( x × 50/3 )

= ( 250 × 3 )/50

= 5 × 3

= 15 years