In how many years will a sum of ₹5,000 yield a simple interest of ₹2,000 at an interest rate of 10% p.a.?

4 years

Principal = Rs.5000

Rate of Interest = 10% p.a.

Simple Interest in 1 year = 5000 × 10% = Rs.500

We need Rs.2000 as simple interest,

So it will be in = 500 × t = 2000

t = \(\frac{2000}{500}\) = 4 years

Alternate :

We know ,

Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)

2000 = \(\frac{5000 × 10 × Time }{100}\)

2 = \(\frac{5 × 10 × Time }{100}\)

Time = 4 years