For money to double, the amount becomes 2 times the principal.
If the principal is P, the final amount is 2P.
The simple interest earned is:
SI=2P−P
SI=P
The simple interest formula is:
SI=100P×R×T
Where P is the principal, R=12.5% per annum, and T is the time in years.
Since the simple interest equals the principal:
P=100P×12.5×T
Dividing both sides by P:
1=10012.5×T
100=12.5×T
T=12.5100
T=225100
T=100×252
T=25200
T=8
Therefore, the sum of money will double itself in 8 years.