Q.If a principal doubles in 20 years with simple interest, then at the same simple interest rate, the principal will become four times in – (a) 30 years (b) 40 years (c) 80 years (d) 60 years
Answer: D
Let the principal \( = x \) rupees. Since it doubles in 20 years, the interest earned is \( (2x - x) \) rupees \( = x \) rupees. \(\therefore\) The rate of interest: \[ \cfrac{100 \times x}{x \times 20} = 5\% \] At the same 5% interest rate, if \( x \) rupees becomes four times, the interest earned will be \( (4x - x) \) rupees \( = 3x \) rupees. \(\therefore\) The required time: \[ \cfrac{100 \times 3x}{x \times 5} = 60 \text{ years} \]
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