Question

In how many years will the interest on a sum of money deposited in a bank at 4% per year be twice of the principal

Answer 1

Answer:

50 years

Step-by-step explanation:

We are assuming this is a case of Simple Interest

P = Principal or initial amount

R = Rate of interest per cent per year = 4

T = time period in years

SI = Simple interest

A = Amount at the end of time period T

We want to find T such that SI = 2P when R = 4

Now,

SI = (P*R*T)/100

=> 2P = (P*4*T)/100

=> 200P = P*4*T

=> 200 = 4*T

=> T = 50

In 50 years, simple interest on a sum of money will be twice the principal.