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In what time (in years) will ₹2,500 fetch an interest of ₹1,000 at 10% per year simple interest?
Question

In what time (in years) will ₹2,500 fetch an interest of ₹1,000 at 10% per year simple interest?

A.

6

B.

7

C.

4

D.

5

Correct option is C

Given:
Principal (P) = ₹2,500
Simple Interest (SI) = ₹1,000
Rate of Interest (R) = 10% per annum
Formula Used:
The formula for Simple Interest is:
SI=P×R×T100SI = \frac{P × R × T}{ 100}​​
Solution:
From the formula, 
T=SI×100P×RT=1,000×1002,500×10T=1,00,00025,000=4 yearsThus, the sum will fetch a simple interest of ₹1,000 in 4 years.T = \frac{\text{SI} \times 100}{\text{P} \times \text{R}}\\T = \frac{1,000 \times 100}{2,500 \times 10}\\T = \frac{1,00,000}{25,000} = 4 \text{ years}\\\text{Thus, the sum will fetch a simple interest of ₹1,000 in 4 years.}\\​​

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