Question

The simple interest  on a sum of money is 1/25^th of the principal, and if the number years is equal to the rate percent per annum. Find the number of years.

1. 1 year
2. 2 years
3. 3 years
4. 4 years

Answer 1

Correct Answer - Option 2 : 2 years

Formula used:

Simple Interest = PTR/100

Calculation:

Let the sum of money be 'x'

Interest = x/25

Simple Interest = PTR/100

Here R = T

SI = PR²/100

⇒ x/25 = x × R²/100

⇒ R² = 4

⇒ R = 2

∴ The number of years is 2 years