Mathematics for FinancePYQ May 20Question 1307 of 512
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What time will be required for a sum of money to double itself at 8%\displaystyle 8\% Simple interest?

Options

A8\displaystyle 8 years
B8.5\displaystyle 8.5 years
C12.5\displaystyle 12.5 years
D12\displaystyle 12 years
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Correct Answer

✅ Option c — 12.5\displaystyle 12.5 years

All Options:

  • A8\displaystyle 8 years
  • B8.5\displaystyle 8.5 years
  • C12.5\displaystyle 12.5 years
  • D12\displaystyle 12 years

Detailed Solution & Explanation

**Derivation of Time to Double Sum** Given: - Rate of Interest (R\displaystyle R) = 8%\displaystyle 8\% per annum - Let the sum be P\displaystyle P. Amount (A\displaystyle A) = 2P\displaystyle 2P **Step 1: Calculate Simple Interest (SI\displaystyle SI)** SI=A−P=2P−P=PSI = A - P = 2P - P = P **Step 2: Set up the Simple Interest formula** SI=P×R×t100SI = \frac{P \times R \times t}{100} P=P×8×t100P = \frac{P \times 8 \times t}{100} 1=8t1001 = \frac{8 t}{100} 8t=100  ⟹  t=1008=12.5 years8 t = 100 \implies t = \frac{100}{8} = 12.5 \text{ years} Hence, **Option C** is the correct answer.

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