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At simple interest, a principal becomes double in 16 years. How much will the principal become in 8 years ?
  • a)
    1 1/4 times
  • b)
    1 1/2 times
  • c)
    1 1/6 times
  • d)
     1 1/3 times
Correct answer is option 'B'. Can you explain this answer?
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At simple interest, a principal becomes double in 16 years. How much w...
Let the sum of money = Rs. P
It becomes double in 16 years. Let the rate of simple annual interest be R%
 
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At simple interest, a principal becomes double in 16 years. How much w...

Given Data:
- Principal becomes double in 16 years at simple interest.

Calculation:
- Let the principal amount be P.
- According to the given data, the amount after 16 years will be 2P.

Formula for Simple Interest:
- Simple Interest (SI) = (Principal * Rate * Time) / 100

Using the formula:
- SI = (P * R * 16) / 100
- 2P = P + SI
- 2P = P + (P * R * 16) / 100
- 2 = 1 + (R * 16) / 100
- R = 100 / 16
- R = 6.25%

Amount after 8 years:
- Using the formula for simple interest, the amount after 8 years will be:
- 1 + (6.25 * 8) / 100 = 1.5 times the principal

Therefore, the principal will become 1 1/2 times in 8 years.
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At simple interest, a principal becomes double in 16 years. How much will the principal become in 8 years ?a)1 1/4 timesb)1 1/2 timesc)1 1/6 timesd)1 1/3 timesCorrect answer is option 'B'. Can you explain this answer?
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