Bunuel wrote:

If interest on a savings account is paid monthly at an annual rate of 25/4 percent and if the interest is not reinvested, then in how many years will the total amount of interest earned equal the amount of money saved in the account?

(A) 36

(B) 24

(C) 18

(D) 16

(E) 12

Since the annual rate is \(\frac{25}{4}\) percent,

we will recover \(\frac{25}{4}*\frac{1}{100} = \frac{25}{400} = \frac{1}{16}\)th of the total money invested every year.

Since, the interest is not re-invested, it will take 16 years to recover the amount such that

the total amount of interest earned is equal to amount of money invested.

(Option D)
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