Mathematics for FinanceMTP Mar 22Question 1343 of 512
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In what time will be a sum of money doubles itself at 6.25%\displaystyle 6.25\% p.a simple interest?

Options

A5\displaystyle 5 years
B8\displaystyle 8 years
C12\displaystyle 12 years
D16\displaystyle 16 years
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Correct Answer

✅ Option d — 16\displaystyle 16 years

All Options:

  • A5\displaystyle 5 years
  • B8\displaystyle 8 years
  • C12\displaystyle 12 years
  • D16\displaystyle 16 years

Detailed Solution & Explanation

**Derivation of Time to Double Sum** Given: - Rate of Interest (R\displaystyle R) = 6.25%\displaystyle 6.25\% per annum simple interest - 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×6.25×t100P = \frac{P \times 6.25 \times t}{100} 1=6.25t1001 = \frac{6.25 t}{100} 6.25t=100  ⟹  t=1006.25=16 years6.25 t = 100 \implies t = \frac{100}{6.25} = 16 \text{ years} Hence, **Option D** is the correct answer.

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