Question
Simple interest on a sum for 5 years is equal to 20
percent of the principal. In how many years interest will be equal to the principal?Solution
Let the principle be Rs. P According to the question, ⇒ (P × 5 × rate)/100 = 20% of P ⇒ rate = 4% Now, let in t years the simple interest will be equal to the principal ⇒ Simple interest = (P × 4 × t)/100 ⇒ P = (P × t)/25 ∴ t = 25 years
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