Question

Find the time required for a sum to become $\frac{11}{10}$ times of itself at the rate of 5% p.a.

• A. 2 years
• B. 4 years
• C. 6 years
• D. 8 years

Answer 1

The correct option is A 2 years

Let the sum invested be ₹ x.
So, the amount = ₹ 1.1x.

We know that,
Principal + Interest = Amount.
So, the interest earned = ₹ (1.1x - x) = ₹ 0.1x.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, $0.1x=\frac{x\times 5\times T}{100}$
Hence, the time = T years = 2 years.