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Simple interst on Rs 500 for 4 years at ...

Simple interst on Rs 500 for 4 years at 6.25% per annum is equal to the simple interst on Rs 400 at 5% per annum for a certain period of time. The period of time is

A

4 years

B

5 years

C

`6 (1)/(4)` years

D

`8 (2)/(3)` years

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The correct Answer is:
To solve the problem, we need to find the time period for which the simple interest on Rs 400 at 5% per annum is equal to the simple interest on Rs 500 for 4 years at 6.25% per annum. ### Step-by-Step Solution: 1. **Identify the given values:** - For the first case: - Principal (P1) = Rs 500 - Rate (R1) = 6.25% per annum - Time (T1) = 4 years - For the second case: - Principal (P2) = Rs 400 - Rate (R2) = 5% per annum - Time (T2) = T (unknown) 2. **Use the formula for Simple Interest (SI):** The formula for simple interest is: \[ SI = \frac{P \times R \times T}{100} \] 3. **Calculate the simple interest for the first case:** \[ SI_1 = \frac{500 \times 6.25 \times 4}{100} \] - Calculate the numerator: \[ 500 \times 6.25 = 3125 \] \[ 3125 \times 4 = 12500 \] - Now divide by 100: \[ SI_1 = \frac{12500}{100} = 125 \] 4. **Set up the equation for the second case:** We know that the simple interest for the second case (SI_2) is equal to SI_1: \[ SI_2 = SI_1 \] \[ \frac{400 \times 5 \times T}{100} = 125 \] 5. **Calculate the simple interest for the second case:** \[ SI_2 = \frac{400 \times 5 \times T}{100} \] - Calculate the numerator: \[ 400 \times 5 = 2000 \] - Thus, we have: \[ \frac{2000 \times T}{100} = 125 \] 6. **Simplify the equation:** \[ 20T = 125 \] 7. **Solve for T:** \[ T = \frac{125}{20} = 6.25 \] ### Final Answer: The period of time (T) is **6.25 years**.
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