A sum of ₹ 12,000 is invested at a simple interest rate of 8% per annum. After how many years will the interest amount be ₹ 3,840?
Show answer & explanation
Correct answer: B
Explanation
Principal = ₹12,000
Simple Interest = ₹3,840
Rate of Interest = 8% per annum
Simple Interest = (Principal × Rate × Time) / 100
3,840 = (12,000 × 8 × Time) / 100
3,840 = 960 × Time
Time = 3,840 / 960
= 4 years