Question Details

A person deposited some amount of money in the bank at simple interest. After 20 years, the amount became nine times the amount deposited. In how many years will the amount become 13 times the amount if the interest rate remains the same?

Options

A

28

B

30

C

25

D

23

Show Answer

Correct Answer :

Option B

30

Solution :

The correct answer/option is 30.

Let the principal amount deposited by the person be P and the rate of simple interest be r% per annum.

According to the formula for simple interest, the simple interest (SI) earned over t years is given by:
SI=P×r×t100
The total amount (A) after t years is the sum of the principal and the interest:
A=P+SI=P+P×r×t100=P1+r×t100

Step 1: Find the rate of interest using the first condition.
We are given that after t=20 years, the amount becomes 9 times the principal amount (A=9P).
Substituting these values into the amount formula:
9P=P+SI
This means the simple interest earned in 20 years is:
SI=9P-P=8P

Now, substitute SI=8P and t=20 into the simple interest formula:
8P=P×r×20100
We can divide both sides by P (since P0):
8=20r100
Simplify the fraction:
8=r5
Solving for r:
r=8×5=40% per annum.

Step 2: Find the time required for the amount to become 13 times the principal.
Let the required time be t2 years. Here, the new amount (A2) is 13 times the principal (A2=13P).
The new simple interest earned is:
SI2=13P-P=12P

Using the simple interest formula with the rate r=40%:
12P=P×40×t2100
Dividing both sides by P:
12=40t2100
Simplify the fraction:
12=2t25
Solving for t2:
2t2=12×5
2t2=60
t2=30 years.

Thus, the amount will become 13 times the principal in 30 years.

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