Multiple choice

A company deposits $ $200$ in bank with an interest rate of $5$%. After how many years will the amount increase by $ $50$ with the same interest rate?

  1. $5$
  2. $10$
  3. $15$
  4. $25$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Simple interest formula: I = P * R * T / 100. 50 = 200 * 5 * T / 100. 50 = 10 * T. T = 5 years.

AI explanation

Using the simple interest formula, the yearly interest is 5% of 200, which is 10. To increase by 50, the required time is 50 divided by 10. The amount increases by $50 in 5 years.

Keep practicing — related questions