- 4 years
- 2 years
- 5 years
- 6 years

Option 3 : 5 years

Given:

Principal = 4 × simple interest

Simple interest = Principal/4

Time (T) = Rate (R)

Concept:

Simple interest is the interest calculated on the principal portion of the loan or the original contribution to the saving account.

Formula Used:

Simple Interest = (P × R × T)/100

Calculation:

Let the principal be '4P'

⇒ Simple interest = 1/4(4P) = P

Also, let the rate of interest be 'R'

So, Time = R

Simple Interest = (P × R × T)/100

⇒ P = (4P × R × R)/(100)

⇒ 100 = 4R2

⇒ R2 = 100 ÷ 4 = 25

⇒ R = 5

Time = 5 years

**∴ The time is 5 years**

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