Difficulty: Easy
Correct Answer: 4 yrs
Explanation:
Introduction / Context:
Equate two simple-interest amounts. For SI, I = P * R * T (with R in per-year fraction). Solve for the unknown time t.
Given Data / Assumptions:
Concept / Approach:
Set I1 = I2 and solve for t.
Step-by-Step Solution:
400 * 0.10 * t = 1000 * 0.04 * 4 → 40 t = 160 → t = 4 years.
Verification / Alternative check:
I1 = 40*4 = 160; I2 = 1000*0.16 = 160; equal.
Why Other Options Are Wrong:
2, 3, 6 years give mismatched interest amounts.
Common Pitfalls:
Mixing percentage and decimal forms; forgetting to multiply 4% by 4 years.
Final Answer:
4 yrs
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