Question

In how many years will the simple interest on a sum of money be equal to the principle at rate of $12\frac{2}{4}$% p.a ?

• A. 8 years
• B. 5 years
• C. 7 years
• D. 6 years

Answer 1

Answer:

A. 8 years

Solution:

Given:

Rate =$12\frac{2}{4}$% = $\frac{50}{4}$%

Formula:

$SI =\frac{PRN}{100}$

Calculation:

Let principal be Rs. x, then

SI = Rs. x

According to the question

$x = \frac{(x\times{50}\times{N})}{(100\times{4})}$

⇒ N = 8 years 

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