Question

In what time will the simple interest on a certain sum of money at 20% per annum become (4/5)^th of itself?
1. 4 years
2. 7 years
3. 5 years
4. 3.5 years

Answer 1

Correct Answer - Option 1 : 4 years

Given:

S.I = 4P/5

Rate(R) = 20%

Formula used:

Simple Interest = (Principal × Rate × Time)/100

Calculation:

Let the time be x years and the sum of money be Rs. P

Simple Interest = (Principal × Rate × Time)/100

⇒ Simple Interest = (P × 20 × x)/100

⇒ (4/5) × P = (P × 20 × x)/100

⇒ x = 4

∴ The required time is 4 years.