Multiple choice

A loan of Rs. 25,000 is taken at a simple interest rate of 12% per annum. If the interest paid is Rs. 7,500, for how many years was the loan taken?

  1. 1.5 years

  2. 2 years

  3. 2.5 years

  4. 3 years

  5. 3.5 years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Using the simple interest formula SI = (P*R*T)/100, we have 7500 = (25000 * 12 * T) / 100. Simplifying gives 7500 = 3000 * T, so T = 7500 / 3000 = 2.5 years.

AI explanation

Using the simple interest formula T = (SI * 100) / (P * R), we substitute the given values. The time is calculated as (7500 * 100) / (25000 * 12), which equals 750000 / 300000. This simplifies to 2.5 years.

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