Question

Meera invests some money at a rate of 2% per year simple interest. How many years does it take for her investment to double in value?

Answer 1

Given:

(i) Meera invests some money at a rate of 2% per year simple interest.

To find:

(i) Time taken or her investment to double in value.

Solution:

Given, the principal value (P) = Rs P

Rate (R) = 2% p.a.

Time (T) = ?

Final amount (A) = Rs 2P

In Simple Interest, we know that,

A = P( 1 + RT)

Putting the values, we get,

2P = P( 1 + 0.02T)

⇒ 2 = 1 + 0.02T

⇒ 0.02T = 1

⇒ T = 1/0.02

⇒ T = 50

The time taken is 50 years.