Multiple choice

In what time will the interest on any sum of money at $10$ percent be $\dfrac {1}{4}$ of the sum?

  1. $5$ years
  2. $2\dfrac {1}{2}$ years
  3. $4$ years
  4. $2$ years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula is I = (P * R * T) / 100. Given I = P/4 and R = 10, we have P/4 = (P * 10 * T) / 100. Dividing by P and solving for T: 1/4 = T/10, so T = 10/4 = 2.5 years.

AI explanation

Let the principal be P, meaning the simple interest required is P/4. Using the formula Time = (Simple Interest * 100) / (Principal * Rate), we substitute the values: Time = ((P/4) * 100) / (P * 10). This simplifies to 25P / 10P, which equals 2.5. The result is 2 1/2 years.

Keep practicing — related questions