Simple interest on a sum for 10 years is equal to 5% of the principle. In how many years interest will be equal to the principle?
- AOption (a)
100
- BOption (b)
150
- COption (c)
200
- DOption (d)
250
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Correct answer
200
Why this answer is correct
Given:
Simple interest on a sum for 10 years is equal to 5% of the principle.
Concept used:
SI = \(\frac{P \times R \times T}{{100}}\)
Where, P = Principle, R = Rate, T = Time
Calculation:
Let the principal be Rs. P
According to the above concept
SI = \(\frac{P \times R \times 10}{{100}}\) = 5% of P
⇒ \(\frac{P \times R \times 10}{{100}}\) = \(\frac{5P}{{100}}\)
⇒ R = 0.5%
Now, let in t years the simple interest is equal to the principle
⇒ SI = \(\frac{P \times 0.5 \times t}{{100}}\)
⇒ P = \(\frac{P \times t}{{200}}\)
⇒ t = 200 years
∴ The required time is 200 years.