Simple interest on ₹ 500 for 4 years at 6.25% per annum is equal to the simple interest on ₹ 400 at 5% per annum for a certain period of time. The period of time is
Aptitude
Simple Interest
Difficulty: Easy
Choose an option
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A4 years
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B5 years
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C$6 \frac{1}{4}$ years
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D$8 \frac{2}{3}$ years
Answer
Correct Answer: $6 \frac{1}{4}$ years
Explanation
### Concept & Equating Simple Interests
When two simple interest scenarios are equal, their respective $\frac{P \times R \times T}{100}$ calculations can be set equal to one another to solve for the missing variable.
$$SI_1 = SI_2 \implies \frac{P_1 \times R_1 \times T_1}{100} = \frac{P_2 \times R_2 \times T_2}{100}$$
### Step-by-Step Solution
* **Scenario 1:**
$P_1 = \text{₹ } 500, T_1 = 4 \text{ years}, R_1 = 6.25\%$
$SI_1 = \frac{500 \times 6.25 \times 4}{100} = 5 \times 25 = \text{₹ } 125$
* **Scenario 2:**
$P_2 = \text{₹ } 400, R_2 = 5\%, T_2 = \text{unknown}$
$SI_2 = \frac{400 \times 5 \times T_2}{100} = 20 \times T_2$
* **Equate them:**
$20 \times T_2 = 125$
$T_2 = \frac{125}{20} = \frac{25}{4} = 6.25 \text{ years}$
* Convert to fraction: $6.25 = 6 \frac{1}{4} \text{ years}$
### Exam Strategy & Shortcut
Equate directly and cancel terms without full multiplication:
$500 \times 4 \times 6.25 = 400 \times 5 \times T_2$
$2000 \times 6.25 = 2000 \times T_2$
Divide both sides by $2000$: $T_2 = 6.25$. No complex arithmetic is required!
### Common Pitfall
A student might perform unnecessary, long multiplication on the left side before realizing the right side also contains factors ($400 \times 5 = 2000$) that easily cancel out the left side ($500 \times 4 = 2000$).
### Final Answer
Therefore, the correct answer is **$6 \frac{1}{4}$ years**.