Simple interest on a sum for 6 years is equal to 40 percent of the principal. In how many years interest will be equal to the principal?
Show answer & explanation
Correct answer: C
Explanation
Given:
Simple interest for 6 years = 40% of the principal
Formula:
Simple interest = Time
Interest in 6 years = 40% of the principal
Interest in 1 year = 40% / 6 = 6⅔%
Interest equal to the principal = 100%
Time = 100 / (40/6) = 15 years