Question

The simple interest received on a sum at the rate of 4 percent per annum is 3/5 of the sum. What is the time period?
1. 15 years
2. 20 years
3. 10 years
4. 12 years

Answer 1

Correct Answer - Option 1 : 15 years

Given:

The rate of the interest annually = 4%

Formula used:

\(I\ =\ {P\ \times R\ \times T \over 100}\)     (Where I = The simple interest, P = The principle, R = The rate, and T = The time)

Calculation:

Let us assume the sum is X and time is T

⇒ The interest = \({3X\over 5}\)

⇒ \({3X\over5}\ =\ {X\ \times 4\ \times T \over100 }\)

⇒ T = 15 years

∴ The required result will be 15 years.