Question

How much time will it take for an amount of Rs.500 to yield Rs.100 as interest at $5\%$ per annum of simple interest?

• A. 5 years
• B. 4 years
• C. 6 years
• D. 3 years

Answer 1

The correct option is B

4 years

Let the time taken be t years. Then,

$100=\frac{500\times 5\times t}{100}$

$\Rightarrow t=\frac{100\times 100}{500\times 5}years=4years$