Multiple choice

Arun took a loan of Rs. 2500 with simple interest for a certain time period and rate of interest per annum is four times the time period. If he paid Rs. 625 as interest at the end of the loan period, then what was the time period?

  1. 1.5 years

  2. 2.5 years

  3. 3.5 years

  4. 4.5 years

  5. 5.5 years
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Simple interest formula: I = (P * R * T) / 100. Given I = 625, P = 2500, and R = 4T. So, 625 = (2500 * 4T * T) / 100. 625 = 100 * T^2. T^2 = 6.25, so T = 2.5 years.

AI explanation

Using the simple interest formula I equals P times R times T divided by 100, we substitute the given values where the interest is 625, the principal is 2500, and the rate is four times the time, so 625 equals 2500 times 4T times T divided by 100. This simplifies to 625 equals 100 times T squared. Solving for T squared gives 6.25, so the time period is 2.5 years.

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