In how many years will the simple interest on a sum of money be equal to the principle at rate of $12\frac{2}{4}$ % p.a. ?
Answer & explanation
Correct answer: option 3
Let principal = P
Simple interest on a sum of money be equal to the principle.
So , Simple Interest = P
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
P = \(\frac{P × 50 × Time }{4 × 100}\)
Time = 8 years