If the simple interest for 5 years is equal to 25% of the principal, then the interest will be equal to the principal after ___________ years.
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 20.
S.I. = (P × R × T)/100
here, S.I. = simple interest, P = principal, R = rate, and T = Time
⇒ S.I. = 25% of P
⇒ 25% × P = (P × R × 5)/100
⇒ 25/100 × P = (P × R × 5)/100
⇒ R = 5%
For S.I. = P
⇒ S.I. = (P × R × T)/100
⇒ P = (P × 5 × T)/100
⇒ T = 20 years