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    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?
    A 30 years Correct Answer Incorrect Answer
    B 40 years Correct Answer Incorrect Answer
    C 25 years Correct Answer Incorrect Answer
    D 35 years Correct Answer Incorrect Answer

    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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