Question

A sum of money invested at simple interest triples itself in 8 years. Find in how many years it will become 8 times itself at the same rate.

a) 12 years
b) 16 years
c) 24 years
d) 32 years

Answer 1

To solve this problem, we need to understand the concept of simple interest and use the formula I = P * r * t. We find that the investment will become 8 times itself in 24 years.

Step-by-step explanation:

Simple interest is calculated using the formula: I = P * r * t. Where: I is the amount of interest earned. P is the principal amount (the initial investment). r is the interest rate (expressed as a decimal). t is the time in years. In this question, we're given that the initial investment triples itself in 8 years. Let's assume the principal amount is P. After 8 years, the investment becomes 3P, so we have 3P = P * r * 8. Simplifying this equation, we find that r = 3/8. Now, we need to find in how many years the investment will become 8 times itself. Let's assume the principal amount is still P. We have: 8P = P * (3/8) * t. Simplifying this equation, we find that t = 24 years. Therefore, the answer is c) 24 years.