Mathematics for FinanceMTP June 24 Series IIQuestion 1417 of 512
All Questions

In what time will a sum of money double its y at 6.25%\displaystyle 6.25\% p.a. simple interest?

Options

A5 years
B8 years
C12 years
D16 years
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Correct Answer

✅ Option d — 16 years

All Options:

  • A5 years
  • B8 years
  • C12 years
  • D16 years

Detailed Solution & Explanation

Let the principal be P\displaystyle P. The rate of simple interest is r=6.25%\displaystyle r = 6.25\% p.a. We want to find the time t\displaystyle t in years for the sum to double itself (meaning the simple interest earned equals the principal P\displaystyle P): SI=PSI = P The formula for Simple Interest is: SI=P×r×t100SI = \frac{P \times r \times t}{100} Substituting the values: P=P×6.25×t100P = \frac{P \times 6.25 \times t}{100} 1=0.0625×t1 = 0.0625 \times t Solving for t\displaystyle t: t=10.0625=16 yearst = \frac{1}{0.0625} = 16 \text{ years} Thus, the sum will double in 16\displaystyle 16 years. Hence, **Option D** is the correct answer.

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