A person invests ₹ 9,840 at 5% per annum simple interest to obtain a total amount of ₹ 12,300. For how many years did he invest the sum?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 5 years.
Given that
A person invests ₹ 9,840 at 5% per annum simple interest
The amount gets = ₹ 12,300
Formula used
S.I. = PRT/100
Amount = P + S.I.
where, P = Principal, R = rate of interest, T = time, S.I. = simple interest
Calculation
S.I. = Amount - P = 12300 - 9840 = ₹ 2460
So, S.I. = 9840 × 5 × time/100
2460 = 492 × time
Time = 2460/492 = 5 years