Question

A person took a loan and purchased a product at a discount of $\$$40. The discount percentage was equal to the rate of interest of the loan. While repaying the money, the interest he had to pay was $\$$80. Find the time taken to repay the loan.

(Assume the interest calcucated for the loan was simple interest.)

• A. 6 months
• B. 4 years
• C. 1 year
• D. 2 years

Answer 1

The correct option is D 2 years

Let the sum be $P$ and the rate of interest be $R$.
So, discount percentage = $R$
Let the time for which the interest is applied on the sum be $T$.

$Interest=Amount\times Rate\times Time$
$80=P\times R\times T....\left(1\right)$

$Discount=Amount\times Rate$
$40=P\times R....\left(2\right)$

Putting the value obtained in equations (2) in (1), we get:
$80=40\times T$
$T=2$

Hence, the time taken to repay the money is 2 years.