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Discussion :: Simple Interest

  1. In how much time would the simple interest on a certain sum be 0.125 times the principal at 10% per annum?
    2. A.
    1 1/4 years
    B.
    1 3/4 years
    C.
    2 1/4 years
    D.
    2 3/4 years

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    Answer : Option A

    Explanation :

    Let sum = x. Then, S.I. = 0.125x = 1/8 x, R = 10%

    Time = (100 * x) / (x * 8 * 10) = 5/4 = 1 1/4 years.

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