A man deposited Rs. 1.0 lakh in his bank account and earned Rs. 25,000 as interest at 5 percent simple interest per annum. Find the time period for which the money remained in the bank.

A3 years

B5 years ✓ Correct

C4 years

D7 years

Correct answer: (B) 5 years

Explanation

The money stayed for 5 years.

Simple interest formula: SI = P x R x T / 100.

25000 = 100000 x 5 x T / 100.

25000 = 5000 x T.

T = 25000/5000 = 5 years.

Want more like this? Create a free account to practise a full test, track your progress, and get spaced-repetition review.