1. 

Consider the following statements :

If a sum of money is lent at simple interest, then the

1. money gets doubled in 5 years if the rate of interest is 16%.

2. money gets doubled in 5 years if the rate of interest is 20%.

3. money becomes four times in 10 years if it gets doubled in 5 years.

Of these statements,
A. 1 and 3 are correct
B. 2 alone is correct
C. 3 alone is correct
D. 2 and 3 are correct

Answer: Option B

Explanation:

Let sum be X. Then , S.I. = X.

1. Time = 100 x X years = 6 years (False)
X x 50/3

2. Time = 100 x X years = 5 years (True)
X x 20

3. Suppose sum = X. Then, S.I. = X and Time = 5 years.

Rate = 100 x X % = 20%
X x 20

Now, sum = X, S.I. = 3X and rate = 20%.

Time = 100 x 3X years = 15 years (False)
X x 20

So, 2 alone is correct.