Question

Consider the following statements:
If a sum of money is lent at simple interest, then the
1. Money gets doubled in 5 years if the rate of interest is $16\frac{2}{3}$%

2. Money gets doubled in 5 years if the rate of interest is 20%

3. Money becomes four times in 10 years if it gets doubled in 5 years
Of these statements

• A. 1 and 3 are correct
• B. 2 alone is correct
• C. 3 alone is correct
• D. 2 and 3 are correct

Answer 1

The correct option is B 2 alone is correct

Let the principal =x
rate of interest=20%
time =5 years
$S.I=\frac{x\times 20\times 5}{100}=x$
$Amount=x+x=2x$
Hence statement 2 is only correct.