Q:
A sum of money invested at simpleinterest triples itself in 8 years. How many times will it become in 20 years time?
Answer & Explanation
Answer: C) 6 times
Explanation: A = P(1 + rt/100)
So, A= 3P (it becomes triples)
3P = P(1 + 8r/100)→r = 25%
Now, when t = 20
⇒A = P(1 + 25*20/100)
⇒A = P(1+ 5)⇒A = 6P
So, it becomes 6 times.
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