Mathematics for FinancePYQ June 22Question 1233 of 512
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In how much time a sum of amount doubles at simple interest at 12.5%\displaystyle 12.5\% rate?

Options

A7 years
B8 years
C9 years
D10 years
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Correct Answer

✅ Option b — 8 years

All Options:

  • A7 years
  • B8 years
  • C9 years
  • D10 years

Detailed Solution & Explanation

**Derivation of Time to Double Principal** Given: - A sum doubles itself under Simple Interest. - Simple Interest Rate (r\displaystyle r) = 12.5%\displaystyle 12.5\% per annum **Step 1: Find Simple Interest (SI\displaystyle SI)** If the sum doubles, the interest earned is equal to the principal: SI=PSI = P **Step 2: Solve for Time (t\displaystyle t)** SI=P×r×t100SI = \frac{P \times r \times t}{100} P=P×12.5×t100P = \frac{P \times 12.5 \times t}{100} 1=12.5t1001 = \frac{12.5 t}{100} t=10012.5=8 yearst = \frac{100}{12.5} = 8 \text{ years} Hence, **Option B** is the correct answer.

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