Question

If P = Rs. 10,000, I = Rs. 2500, R = 12.5% simple interest. The number of years T will be:
(a) 1.5 years
(b) 2 years
(c) 3 years
(d) None of the above

Answer 1

Hint: To solve the above question we are going to use the simple relation between P, R, I, T. The formula that we are going to use $I=\dfrac{PRT}{100}$, we will put all the given values in the formula and then find the value of T.

Complete step-by-step answer:
Let’s start our solution by first writing the formula that we are going to use,
$I=\dfrac{PRT}{100}$
Now we will substitute the values of I, P, R and then we will find the value of T.
Substituting the values in $I=\dfrac{PRT}{100}$
P = Rs. 10,000
I = Rs. 2500
R = 12.5
After substituting we get,
$2500=\dfrac{10000\times 12.5\times T}{100}$
Now taking all the values to other side of the equation except T we get,
$T=\dfrac{2500}{10000\times 0.125}=\dfrac{25}{12.5}=2$
Hence the answer will be 2 years.
So, the correct option is (b).

Note:In this question we have used a simple formula $I=\dfrac{PRT}{100}$ to find the value of T, so the formula should be kept in mind. One can also use I = PRT, but in this case the value of R will not be in percentage, hence it should be kept in mind.