Simple Interest

Quantitative Finance Level 1

When calculating with simple interest, a sum of money doubles itself in 10 years.
In how many years would it triple itself (with simple interest)?

18 years 15 years 10 years 20 years

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Anuj Shikarkhane by Anuj Shikarkhane , 19, India

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2 solutions

Let n =the original amount of money

Let x= the amount of annual interest

Let y=the number of years needed for triple the amount

Then

n+10x=2n

So X=n/10

Then

n+(n/10)*y=3n

y=20

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@Anuj Shikarkhane FYI, as the creator of a problem, you can edit it directly by clicking on the "dot dot dot" menu in the lower right corner, and selecting edit. Note that you can also use this method to delete a problem.

Calvin Lin Staff - 6 years, 10 months ago

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Ok, I will do that.

Anuj Shikarkhane - 6 years, 10 months ago
Tushar Malik
Aug 14, 2014

Just remember one formula for this type of questions i.e. R*T=100 (N-1), where R= rate of interest, T= time, N= it means that it doubles, triples etc. and you will be able to solve the question very quickly.

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