Mathematics for FinanceMTP Jun 23 Series IIQuestion 1383 of 512
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A certain sum of money becomes double at 5%\displaystyle 5\% rate of S.I. p.a. in a certain time, the time in years is

Options

A10\displaystyle 10 years
B20\displaystyle 20 years
C25\displaystyle 25 years
DNone of these
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Correct Answer

✅ Option b — 20\displaystyle 20 years

All Options:

  • A10\displaystyle 10 years
  • B20\displaystyle 20 years
  • C25\displaystyle 25 years
  • DNone of these

Detailed Solution & Explanation

**Derivation of Time to Double Sum** Given: - Rate of Simple Interest (R\displaystyle R) = 5%\displaystyle 5\% 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×5×t100P = \frac{P \times 5 \times t}{100} 1=5t1001 = \frac{5 t}{100} 5t=100  ⟹  t=20 years5 t = 100 \implies t = 20 \text{ years} Hence, **Option B** is the correct answer.

More Questions from Mathematics for Finance

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Rs.1,25,000\displaystyle 1,25,000 is borrowed at compound interest at the rate of 2%\displaystyle 2\% for the 1st year, 3%\displaystyle 3\% for the second year and 4%\displaystyle 4\% for the 3rd year. Find the amount to be paid after 3 years.

If Rs. 1,000\displaystyle \text{Rs. }1,000 be invested at interest rate of 5%\displaystyle 5\% and the interest be added to the principal every 10\displaystyle 10 years, then the number in years in which it will amount to Rs. 2,000\displaystyle \text{Rs. }2,000 is:

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