Question

In a certain time, a sum of money becomes five times itself if the rate of the interest is 16% p.a. Then the certain time (in years) is:
1. 30
2. 38
3. 32
4. 25

Answer 1

Correct Answer - Option 4 : 25

Given:

A sum of money becomes five times itself

Rate =16% p.a

Formula used:

SI = (P × R × T) / 100

SI = Simple Interest

P = Principal

T = Time

R = Rate

Calculation:

Let initially Principal be x

⇒ It becomes 5x in t time perod

⇒ Simple interest = 5x - x 

⇒ 4x

⇒ 4x = (x × 16 × t) / 100

⇒ 4 × 100 = 16t

⇒ t = 25 years

∴ It takes 25 years to become 5 times