    Question

# In what time will $2500 lent at 2% per annum on simple interest earn as much interest as$3000 will earn in 5 years at 5% per annum on simple interest?

A
25 years
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B
5 years
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C
10 years
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D
15 years
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Solution

## The correct option is D 15 yearsGiven, P1 = Principal=$2500 R1 = Rate of interest=2% Let time period be T1 ∴Simple Interest1=PRT100=2500×2×T1100 and P2 = Principal=$3000 R2 = Rate of interest=5% T2 = Time period = 5 years ∴Simple Interest2=PRT100=3000×5×5100 According to question, Simple Interest1=Simple Interest2 ⇒2500×2×T1100=3000×5×5100 ⇒25×100×2×T1100=30×100×5×5100 Cancel out common factors, we get ⇒25×2×T1=30×5×5 ⇒50×T1=150×5 ⇒50×T1=750 Dividing both the sides by 50, we get T1=75050 Simplify and cancel out common factors, we get ⇒T1=15×5050 ⇒T1=15 Hence, required time period is 15 years.  Suggest Corrections  0      Similar questions  Related Videos   Introduction to Simple Interest
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