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In how many years will Rs. 2 lakh double itself at 11.5% per annum simple interest?
Less than 8
Between 8 and 9
Let say after a Time period (T) 'x' years the amount Rs. 2 lakh gets doubled at a rate of interest (R) = 11.5% per annum
Initial principle amount (P) = 2,00,000 Rs.
Simple Interest (I) for 'x' years is given by I = $$PTR\div 100$$ = $$200000\times x\times 11.5\div 100$$
=> I = $$23000\times x$$.
Final Principle amount (P') = P + I = $$2\times P$$ (as given)
=> I = $$2\times P - P$$ = P
=> $$23000\times x$$ = 200000
=> x = $$200000\div 23000$$
=> x = 8.695 = between 8 and 9.
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