Question

Georgia loans $\$10,000$ at simple interest for as many years as the rate of interest (per annum). What is the time for which she loaned the money if she gets $\$12,500$ at the end of the loan period?

• A. $5\text{years}$
• B. $10\text{years}$
• C. $25\text{years}$
• D. $2.5\text{years}$

Answer 1

The correct option is A $5\text{years}$

$P=\$10,000,r=t$

$SI=\text{Amount}-P$

$SI=12,500-10,000=\$2500$

Simple interest, $SI=\frac{Prt}{100}$

$2500=\frac{10,000\times t\times t}{100}[\because r=t]$

$2500=\frac{100\times t\times t}{1}$

$25=t\times t$

$t=5\text{years}$

Georgia loans the money for $5\text{years}$.