Correct Answer: 3/2 years
Explanation:
Since Interest accumulates half yearly so effective rate = R/2 = 4/2 = 2. And effective time is 2t. ∵ 6250 [1 + 2/100]2t = 6632.55 ⇒ (1 +2/100)2t = 663255/625000 = 132651/125000 = (51/50)3 ⇒ (51/50)2t = (51/50)3 ⇒ 2t =3 ∴ t = 3/2 years