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    Question

    A certain sum is invested at a simple interest rate of

    12% per annum for a certain period of time. If the sum becomes four times the principal at the end of the period, what is the duration of the investment?
    A 22 years Correct Answer Incorrect Answer
    B 24 years Correct Answer Incorrect Answer
    C 25 years Correct Answer Incorrect Answer
    D 20 years Correct Answer Incorrect Answer

    Solution

    Given: A = 4P r = 12% = 0.12 4P=P(1+0.12t) Solve for t- 4 = 1+0.12t 3 = 0.12t t =3/0.12 t =300/12 =25 years

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