Question

In how many years will Rs. 2 lakh double itself at 11.5% per annum simple interest?
1. Less than 8
2. Between 8 and 9
3. 9.3
4. 10.5

Answer 1

Correct Answer - Option 2 : Between 8 and 9

Calculation:

Amount after T years =Prinicpal + Simple interest = 2 × Principal

Simple interest after T years = Principal

P × R × T/100 = P

T = 100/11.5 = 1000/115 = 8.69

∴ The time by which the amount will double itself is between 8 and 9 years.