Multiple choice

In how much time would the simple interest on a certain sum be $0.125$ times the principal at $10$% per annum?

  1. $15$ months
  2. $12$ months
  3. $1.5$ yrs
  4. Data insufficient

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

SI = P * R * T / 100. Given SI = 0.125P and R = 10. 0.125P = P * 10 * T / 100 => 0.125 = 0.1 * T => T = 1.25 years. 1.25 years = 15 months.