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Meera invests some money at a rate of 2% per year simple interest. How many years does it take for her investment to double in value? |
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Answer» Given: (i) Meera invests some money at a rate of 2% per YEAR simple INTEREST. To FIND: (i) TIME taken or her investment to double in value. Solution: Given, the principal value (P) = Rs P Rate (R) = 2% p.a. Time (T) = ? Final amount (A) = Rs 2P In Simple Interest, we know that, A = P( 1 + RT) PUTTING the values, we get, 2P = P( 1 + 0.02T) ⇒ 2 = 1 + 0.02T ⇒ 0.02T = 1 ⇒ T = 1/0.02 ⇒ T = 50 The time taken is 50 years. |
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