Question

Pranjal borrows a sum of $Rs20,000$ at the rate of $5\%$ p.a. After how many years does she pay the money back if she pays an interest of $Rs2500$?

• A. $3\frac{1}{2}years$
• B. $1\frac{1}{2}years$
• C. $2\frac{1}{2}years$
• D. $4\frac{1}{2}years$

Answer 1

The correct option is C $2\frac{1}{2}years$

$P=Rs.20000,R=5\%,SI=Rs.2500$

$SI=\frac{PRT}{100}$

$2500=\frac{20000\times 5\times T}{100}$

$⟹T=2.5$ years.