Question

In how many years will the simple interest on a sum of money be equal to the principle at rate of \(12 \dfrac{2}{4}\%\) p.a.?
1. 8 years
2. 5 years
3. 7 years
4. 6 years

Answer 1

Correct Answer - Option 1 : 8 years

Given:

Rate = \(12 \dfrac{2}{4}\%\) = (50/4)%

Formula:

SI = Prt/100

Calculation:

Let principal be Rs. x, then

SI = Rs. x

According to the question

x = (x × 50 × t)/(100 × 4)

⇒ t = 8 years 

∴ In 8 years will the simple interest be equal to the principal.