After how many years will a sum of ₹8,925 at simple interest fetch a total amount of ₹12,941.25 at the rate of 9% per annum?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e 5 years.
Amount = Principal + SI = ₹12,941.25
SI = Amount - Principal
SI = 12,941.25 - 8,925 = ₹4,016.25
SI = (P × R × T) / 100 = 4,016.25 = (8,925 × 9 × T) / 100 = (8,925 × 9) = 80,325
So:
⇒ 4,016.25 = (80,325 × T) / 100
⇒ 401,625 = 80,325 × T
T = 401,625 / 80,325 = 5 years