Question

simple interest on a sum of money is 1/25 th of the principal and the number of years is equal to the rate of interest per annum. Then the amount after 4 years will be
A) 1.08 times the principal
B) twice the principal
C) 1.21 times the principal
D) 1.81 times the principal

Answer 1

Answer:

A. 1.08 times the Principal.

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Answer 2

Answer:

B) twice the principal

Step-by-step explanation: We know that P*R*T/100= SI

Let the principal amount be P

Then, the SI is 1/25 of P

As per equation,

    P*R*T/100= 1/25P

or,P*R*T=1/25P *100

or,P*R*T=4P

or,R*T=4

So rate of interest and time will be 2 units respectively.

Now, the time given is 4 years. So,

P*2*4/100=1/25P

or, 8P=4P

or,2p=p

There fore we conclude that the Simple interest is twice the principal.

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