A sum of money doubles itself in 5 years at simple interest. What will it become

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Question: A sum of money doubles itself in 5 years at simple interest. What will it become in 15 years?

Options:

Correct Answer: 4 times

Solution:

In 5 years, it doubles. In 15 years (3 times 5 years), it will be 2 × 3 = 6 times the original amount.

A sum of money doubles itself in 5 years at simple interest. What will it become in 15 years?

A sum of money doubles itself in 5 years at simple interest. What will it become in 15 years?

Step 1: Understand that the money doubles in 5 years at simple interest.
Step 2: If the original amount is 'X', after 5 years it becomes '2X'.
Step 3: Since 15 years is 3 times 5 years, we can calculate how much it will grow in 15 years.
Step 4: In 15 years, the amount will be 2 times the amount after 5 years for each of the 3 periods of 5 years.
Step 5: Therefore, after 15 years, the amount will be '2X' (after 5 years) multiplied by 3, which equals '6X'.
Step 6: Conclude that the original amount will become 6 times the original amount in 15 years.

Simple Interest – Understanding how simple interest works, particularly how it accumulates over time.
Doubling Time – Recognizing the relationship between time and the amount of money in simple interest scenarios.