A certain sum is lent at a certain rate of compound interest. It grows to 1.44 times its value in 2 years. If the same sum is lent at simple interest at the same rate, in how many years would it double itself?
A certain sum is lent at a certain rate of compound interest. It grows to 1.44 times its value in 2 years. If the same sum is lent at simple interest at the same rate, in how many years would it double itself?
Solution
✅ Correct Option: 3
- Let's say rate = r%
For compound interest in 2 years:
- Now for simple interest to double:
Where t is time in years
Therefore, at simple interest, the sum will double in 5 years.