Question

Mike invested 1,000 at simple interest. If the amount became 3 times in 12.5 years then what will be the total amount of the investment after 25 years?

• A. ₹ 3000
• B. ₹ 5000
• C. ₹ 7000
• D. ₹ 9000

Answer 1

The Correct Option is B

Step 1: Use the simple interest formula:

• A = P + P × r × t 
• Where:
  • A is the final amount.
  • P is the principal.
  • r is the rate of interest per annum.
  • t is the time in years.

Step 2: Given that the amount becomes 3 times in 12.5 years:

• 3P = P + P × r × 12.5
• 3P − P = P × r × 12.5
• 2P = P × r × 12.5
• r = 2 ÷ 12.5 = 0.16 = 16%

Step 3: Find the total amount after 25 years:

• A = P + P × 0.16 × 25
• A = 1000 + 1000 × 4 = 1000 + 4000 = 5000

Final Conclusion: The correct answer is (B) ₹5000.