Multiple choice

At the rate of 12.5% per annum, the simple interest on a sum is 5/4 of the principal. What is the time period (in years)?

  1. 12.5

  2. 8

  3. 10

  4. 15
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

SI = (P * R * T) / 100. Given SI = 5/4 * P and R = 12.5%. 5/4 * P = (P * 12.5 * T) / 100. 1.25 = 0.125 * T. T = 1.25 / 0.125 = 10 years.

AI explanation

Let the principal be P and the simple interest be 5/4 times P. Using the simple interest formula, time equals interest multiplied by 100 divided by the product of rate and principal. Substituting the values gives time equal to 5/4 multiplied by P multiplied by 100 divided by 12.5 multiplied by P, which simplifies to 500 divided by 50. The time period is 10 years.

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