Difficulty: Easy
Correct Answer: 54 yr
Explanation:
Introduction / Context:
With simple interest, the amount grows linearly in time: A = P * (1 + r * t). Knowing the time to double fixes the rate; we can then scale to any target multiple.
Given Data / Assumptions:
Concept / Approach:
Compute r from the doubling condition and plug that r into the tenfold condition to obtain T.
Step-by-Step Solution:
1 + 6r = 2 → 6r = 1 → r = 1/6 per year = 16 2/3 %1 + (1/6) * T = 10 → T/6 = 9 → T = 54 years
Verification / Alternative check:
At r = 1/6, the linear term after 54 years is r * T = 9; 1 + 9 = 10 → tenfold (correct).
Why Other Options Are Wrong:
35, 49, and 59 years do not satisfy 1 + r * T = 10 when r = 1/6.
Common Pitfalls:
Using compound-interest reasoning or misreading 'twofold' as 200% interest (it is 100% over principal).
Final Answer:
54 yr
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