Correct Answer - Option 3 : 5 years

**Given:**

Principle = Rs. 2,400

Rate = 12.5%

Amount = Rs. 3,900

**Formula Used:**

Interest = Amount – Principle

Simple Interest = (P × T × R)/100

where,

'P' is principle

'T' is time

'R' is rate

**Calculation:**

Interest = Amount – Principle

⇒ Interest = 3900 – 2400

⇒ Interest = 1,500

Simple Interest = (P × T × R)/100

⇒ 1,500 = (2400 × T × 12.5)/100

⇒ 1,500 = (2400 × T)/8

⇒ T = 1500/300

⇒ T = 5 years

**∴ Time required is 5 years.**