Question 63

In how many years, an amount becomes three times of itself, if simple interest is calculated at a rate of 10% per annum?

Solution

Let's assume the initial amount is 'P'.

R = rate of interest = 10%

T = time

A = amount after 'T' years = 3P

$$A = P+\frac{P\times\ R\times\ T}{100}$$

$$3P = P+\frac{P\times\ 10\times\ T}{100}$$

$$3P-P = \frac{P\times\ 10\times\ T}{100}$$

$$2P = \frac{P\times\ 10\times\ T}{100}$$

$$2 = \frac{ 10\times\ T}{100}$$

$$2 = \frac{T}{10}$$

T = 20 years

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