Find the sum for which $ 1,250.00 will amount to $ 2,031.25 at 12.5% per annum simple interest.
A
2 years
B
3 years
C
4 years
D
5 years
Verified Correct Answer: D.
Step-by-Step Mathematical Solution
Simple interest = Amount - Principal = $(2,031.25 - 1,250) = $ 781.25
S.I = \(\frac{\text{PRT}}{100}\)
781.25 = \(\frac{1250 \times 12.5 \times T}{100}\)
T = \(\frac{781.25 \times 100}{1250 \times 12.5}\) = 5 years.
Source: Myschool Past Questions Archive (Record #71762)