Correct Answer - Option 2 : 25 years
Given:
Simple interest will be 5 times of sum of money invested and the rate of interest is 20%.
Formula used:
Simple interest = (P × R × T)/100
where, P = Principal, R = Rate, T = Time
Calculation:
Let the sum of money be P.
So,
Simple Interest = 5P
Now, Let the time period be t.
So, According to the question
5P = (P × 20 × t)/100
⇒ (5 × 100)/20 = t
⇒ t = 500/20
⇒ t = 25 years
∴ The time is 25 years.
Here it is given that the simple interest will be 5 times of principal not the amount. If you take amount as 5 times of principal then the answer will be difference.
