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A sum is invested at 10 % per annum with simple interest. What will be the time taken to increase its value by 25% ?

Solution

✅ Correct Option: 3

With simple interest the sum grows by 10%10\% of the principal each year. To gain 25%25\% of the principal, time =2510=2.5= \frac{25}{10} = 2.5 years. Using SI=P×R×T100SI = \frac{P \times R \times T}{100} with SI=0.25PSI = 0.25P and R=10R = 10 gives the same result.

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