An amount becomes 3 times in 6 years on a cer… | GMAT Sprint

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PS · Problem Solving

705-805

percent

An amount becomes 3 times in 6 years on a certain rate of simple interest. In how many years it will become 24 times?

Correct answer marked below

48 Years

50 Years

69 Years

Correct

70 Years

72 Years

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Explanation

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Official Explanation

Official

Let the principal be

x

.

In 6 years, the amount becomes 3 times, so interest earned in 6 years is

3x - x = 2x

.

Using simple interest formula:

I = P \times r \times t

2x = x \times r \times 6

r = \frac{2x}{6x} = \frac{1}{3}

per year, or

r = \frac{100}{3}\%

per year.…

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What this question tests

Your ability to apply GMAT math concepts to solve a multi-step problem quickly and accurately. At the 705-805 level, accuracy and speed both matter.

Overcomplicating the setup — most GMAT problems reward a direct, organized approach over brute calculation.