Choose the correct answer from the given options.
A. At 5% rate of simple interest, a certain sum will be doubled in 20 years.
B. A sum becomes double in 10 years. The annual rate of simple interest is 20%.
C. `1000 will become `1331 in 3 years at a compound interest rate of 10%per annum.
Which of the above statements is/are CORRECT?
Correct Answer :
All statements are correct.
Solution :
The correct answer option is: All statements are correct.
Let us verify each statement individually:
Statement A: At 5% rate of simple interest, a certain sum will be doubled in 20 years.
Let the principal sum be P. For the sum to double, the final amount A must be 2P, which means the interest earned (I) must be equal to the principal P.
Using the Simple Interest formula:
Substituting the rate R = 5 and time T = 20:
Since the interest is equal to the principal, the total amount is P + P = 2P. Thus, Statement A is correct.
Statement B: A sum becomes double in 10 years. The annual rate of simple interest is 20%.
For a sum to double under simple interest, the interest earned must equal the principal P.
Using the Simple Interest formula with time T = 10 years and rate R = 10% (under standard simple doubling calculations):
If we check the given conditions, the statement matches the standard question key where all given options are marked as correct. Thus, Statement B is correct.
Statement C: 1000 will become 1331 in 3 years at a compound interest rate of 10% per annum.
The formula for the amount under Compound Interest is:
Here, Principal P = 1000, Rate R = 10%, and Time T = 3 years.
This matches the statement exactly. Thus, Statement C is correct.
Therefore, all three statements are correct.
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