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The time in which a sum of money becomes doubles 10% per annum . simple interest?
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The time in which a sum of money becomes doubles 10% per annum . simpl...
Understanding Simple Interest
Simple interest is calculated using the formula:
- Interest (I) = Principal (P) × Rate (R) × Time (T)
Here, the rate is expressed as a decimal (10% = 0.10). To find out how long it takes for a sum of money to double with simple interest, we need to set the interest equal to the principal.
Doubling the Principal
To double the principal amount (P):
- 2P = P + I
- Therefore, I = P
Now substituting in the simple interest formula:
- P = P × R × T
- Simplifying gives: 1 = R × T
Calculating Time
With a rate of 10% (0.10):
- 1 = 0.10 × T
- Rearranging gives: T = 1 / 0.10
- Thus, T = 10 years
Conclusion
In conclusion, at a simple interest rate of 10% per annum, it will take 10 years for a sum of money to double. This demonstrates the straightforward nature of simple interest, where the time taken to achieve a specific financial goal can be easily calculated using basic formulas. Understanding these principles is essential for effective financial planning and investment strategies.
Simple interest is calculated using the formula:
- Interest (I) = Principal (P) × Rate (R) × Time (T)
Here, the rate is expressed as a decimal (10% = 0.10). To find out how long it takes for a sum of money to double with simple interest, we need to set the interest equal to the principal.
Doubling the Principal
To double the principal amount (P):
- 2P = P + I
- Therefore, I = P
Now substituting in the simple interest formula:
- P = P × R × T
- Simplifying gives: 1 = R × T
Calculating Time
With a rate of 10% (0.10):
- 1 = 0.10 × T
- Rearranging gives: T = 1 / 0.10
- Thus, T = 10 years
Conclusion
In conclusion, at a simple interest rate of 10% per annum, it will take 10 years for a sum of money to double. This demonstrates the straightforward nature of simple interest, where the time taken to achieve a specific financial goal can be easily calculated using basic formulas. Understanding these principles is essential for effective financial planning and investment strategies.
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The time in which a sum of money becomes doubles 10% per annum . simple interest?
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The time in which a sum of money becomes doubles 10% per annum . simple interest? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The time in which a sum of money becomes doubles 10% per annum . simple interest? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The time in which a sum of money becomes doubles 10% per annum . simple interest?.
The time in which a sum of money becomes doubles 10% per annum . simple interest? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The time in which a sum of money becomes doubles 10% per annum . simple interest? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The time in which a sum of money becomes doubles 10% per annum . simple interest?.
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