Correct Answer - Option 2 : 2.5 years
Given:
Principal = Rs. 4000
Rate of interest = 12%
Simple interest = Rs. 1200
Formula used:
S.I = PRT/100
Where, P = Principal
R = Rate of interest
T = Time period
Calculation:
1200 = (4000 × 12 × T)/100
⇒ 120/48 = T
⇒ 2.5 = T
∴ The required time period is 2.5 years