Question : If the simple interest for 5 years is equal to 25% of the principal, then the interest will be equal to the principal after _______ years.
Option 1: 20
Option 2: 30
Option 3: 25
Option 4: 22
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Correct Answer: 20
Solution :
Given: The Simple interest for 5 years is equal to 25% of the principal.
So, the simple interest becomes 25% of the principal in 5 years.
Since Simple interest is directly proportional to the principal,
$\therefore$ It will become 100% of the principal in $(\frac{5}{25}×100)=20$ years
Hence, the correct answer is 20.
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