A sum of money triples itself, the rate of simple interest being 5% per annum. What is the time period ?
1. 40 Years
2. 30 Years
3. 20 Years
4. 60 Years
1. 40 Years
2. 30 Years
3. 20 Years
4. 60 Years
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Correct Answer – Option 1 : 40 Years
Given:
Sum of Money becomes 3 times
Rate of simple interest = 5% per annum
Formula Used;
Simple interest = (Principal × rate × time)/100
Amount = Principal + Simple interest
Calculation:
Let the principal be Rs A
Then after tripling Amount will become 3A
Simple interest = 3A – A = 2A
2A = (A × 5 × time)/100
⇒ Time = (2A × 100)/(A × 5) = 40 years
∴ The Time period is 40 years.