Anshu invested a certain sum at a simple interest of r% p.a. such that it amounts to 180% of itself in 5 years. Find the interest earned when Rs. 2500 is invested at a simple interest of r% p.a. for 2 years.
Show answer & explanation
Correct answer: A
Explanation
Given:
Amount after 5 years = 180% of the principal
Principal = 2500
Time = 2 years
Using the formulas:
A = P(1 + RT/100)
SI = (P × R × T) / 100
1 + 5R/100 = 1.8
5R/100 = 0.8
R = 16%
SI = (2500 × 16 × 2) / 100 = 800
Interest earned = ₹800