Question
A certain sum of money becomes 5 times of itself in 25
years at simple interest. In how many years does it become double of itself at the same rate of simple interest?Solution
Let the principal = Rs. x, Amount = Rs. 5x, Time = 25 years ∴ Simple Interest = Rs. (5x – x) = Rs. 4x Rate = [(4x × 100)/(x × 25)]% p.a. = 16% p.a. Now, Principal = Rs. x, Amount = Rs.2x, Rate = 16%p.a. Simple Interest = Rs. (2x − x)= Rs. x ∴ Time = (x × 100)/(x × 16) = 6.25 years.
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