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The simple interest earned on a sum is (...

The simple interest earned on a sum is `(1)/(25)` of the sum, where the number of years of investment is equal to the rate percentage. For how many years was the sum invested?

A

2

B

5

C

3

D

4

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we will use the formula for simple interest and the information provided in the question. ### Step 1: Understand the Problem We know that: - The simple interest (SI) earned on a sum is \( \frac{1}{25} \) of the sum (let's denote the sum as \( P \)). - The number of years of investment (let's denote it as \( T \)) is equal to the rate of interest (let's denote it as \( R \)). ### Step 2: Write the Formula for Simple Interest The formula for simple interest is given by: \[ SI = \frac{P \times R \times T}{100} \] ### Step 3: Substitute the Given Values From the problem, we have: \[ SI = \frac{1}{25} P \] And since \( T = R \), we can denote both as \( R \). Thus, we can rewrite the simple interest formula as: \[ \frac{1}{25} P = \frac{P \times R \times R}{100} \] This simplifies to: \[ \frac{1}{25} P = \frac{P \times R^2}{100} \] ### Step 4: Cancel \( P \) from Both Sides Assuming \( P \neq 0 \), we can divide both sides by \( P \): \[ \frac{1}{25} = \frac{R^2}{100} \] ### Step 5: Cross Multiply to Solve for \( R^2 \) Cross multiplying gives us: \[ 1 \times 100 = 25 \times R^2 \] This simplifies to: \[ 100 = 25R^2 \] ### Step 6: Solve for \( R^2 \) Now, divide both sides by 25: \[ R^2 = \frac{100}{25} \] \[ R^2 = 4 \] ### Step 7: Take the Square Root Taking the square root of both sides gives us: \[ R = 2 \] ### Step 8: Conclusion Since \( R \) is equal to the number of years \( T \), we find that: \[ T = 2 \] Thus, the sum was invested for **2 years**. ### Final Answer The number of years the sum was invested is **2 years**. ---
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