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1. With 12.50% simple interest rate how many years are needed for a principal to get double ?
- A. 8
- B. 8
- C. 8
- D. 8
Answer: Option A
Explanation:
Principal with simple interest, A = P(1 + n r)
or, 2P = P(1 + n x 12.5/100)
or, 2P/P = 1 + n x 12.5/100
or, n x 12.5/100 = 2 - 1
or, n x 12.5/100 = 1
or, n = 1 x 100 / 12.5 = 8 years
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