Correct Answer - Option 2 : 2.5 Years
Given:
I = P/ 4
R = 10%
Formula used:
I = P × R × N/ 100
Where, P = Principal amount, R = Rate of interest, N = number of years and I = Simple interest
Calculation:
I = P/ 4
⇒ P/ 4 = P × 10 × N/ 100
⇒ 100/ (10 × 4) = N
⇒ N = 2.5 years
∴ N is 2.5 years