Question 51

How long will a sum of money take to double. if it is invested at 9.09% p.a. simple interest?

Solution

Let say, P amount of money will double in k number of years at 9.09% p.a. simple interest rate.

So,$$(P+Pk×9.09/100)=2P$$

or,$$(1+9.09k/100)=2$$

or,$$9.09k/100=1$$

or,$$k=100/9.09$$

or,k=11(approx)

So, C is correct choice.

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