A sum of ₹30,000 becomes ₹38,400 after being invested at a simple interest of 8% per annum in how many years?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 3.5.
Given that
Principal (P) = ₹30,000
Amount (A) = ₹38,400
Rate of simple interest R = 8% p.a.
Formula used
S.I. = PRT/100
A = P + S.I.
where, P = principal, R = rate of interest, T = time
Calculation
S.I. = A - P = 38400 - 30000 = 8400
S.I. = 30000 × 8 × T/100
8400 = 300 × 8 × T
T = 84/24 = 3.5 years