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    Question

    A certain sum is invested at a simple interest rate of

    10% per annum for a certain period. If the sum becomes five times the principal at the end of the period, what is the duration of the investment?
    A 20 years Correct Answer Incorrect Answer
    B 40 years Correct Answer Incorrect Answer
    C 25years Correct Answer Incorrect Answer
    D 28years Correct Answer Incorrect Answer

    Solution

    Given: A = 5P r = 10% = 0.10 5P=P(1+0.10t) Solve for t- 5 = 1+0.10t 4 = 0.10t t =4/0.10 t =400/10 =40 years

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