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.