A sum of money becomes 3 times in 12 years. In how many years it will become 5 times at the same rate of simple interest?Options20 years24 years30 years16 years

The problem is about simple interest. The formula for simple interest is I = PRT, where I is the interest, P is the principal amount (the initial amount of money), R is the rate of interest, and T is the time.

From the problem, we know that a sum of money becomes 3 times in 12 years. This means that the interest earned is twice the principal amount (because the principal amount plus twice the principal amount gives us the total which is 3 times the principal amount).

So, we can write the equation as follows: 2P = PRT (where T is 12 years). From this, we can find the rate of interest, R = 2/12 = 1/6 per year.

Now, we want to find out when the sum of money will become 5 times. This means that the interest earned will be 4 times the principal amount (because the principal amount plus 4 times the principal amount gives us the total which is 5 times the principal amount).

So, we can write the equation as follows: 4P = PRT. We know the rate of interest R from the previous step, so we can substitute it into the equation to find T: T = 4 / (1/6) = 24 years.

So, the sum of money will become 5 times in 24 years at the same rate of simple interest. Therefore, the correct option is 24 years.