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A sum was doubled with 12(1/2)% rate of ...

A sum was doubled with `12(1/2)%` rate of simple interest, per annum. Then time taken for that sum is

A

10 years

B

8 years

C

`12 1/2` years

D

`8 1/2` years

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem of how long it takes for a sum to double at a simple interest rate of \(12.5\%\) per annum, we can follow these steps: ### Step-by-Step Solution: 1. **Understand the Problem**: We need to find the time taken for a sum of money (let's call it \(X\)) to double at a simple interest rate of \(12.5\%\). 2. **Define the Variables**: - Let the principal amount (initial sum) be \(X\). - The amount after doubling will be \(2X\). - The rate of interest is \(12.5\%\) per annum. 3. **Calculate Simple Interest**: The simple interest (SI) earned when the sum doubles can be calculated as: \[ \text{SI} = \text{Amount} - \text{Principal} = 2X - X = X \] 4. **Use the Simple Interest Formula**: The formula for simple interest is given by: \[ \text{SI} = \frac{P \times R \times T}{100} \] Where: - \(P\) is the principal amount (which is \(X\)), - \(R\) is the rate of interest (which is \(12.5\%\)), - \(T\) is the time in years (which we need to find). 5. **Substituting Values into the Formula**: Substitute the values into the simple interest formula: \[ X = \frac{X \times 12.5 \times T}{100} \] 6. **Cancel Out \(X\)**: Since \(X\) is common on both sides, we can cancel it out (assuming \(X \neq 0\)): \[ 1 = \frac{12.5 \times T}{100} \] 7. **Rearranging the Equation**: Rearranging gives us: \[ 12.5 \times T = 100 \] 8. **Solving for \(T\)**: To find \(T\), divide both sides by \(12.5\): \[ T = \frac{100}{12.5} \] 9. **Calculating \(T\)**: Simplifying the division: \[ T = 8 \] ### Conclusion: The time taken for the sum to double at a simple interest rate of \(12.5\%\) per annum is **8 years**.
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