For how many years will ₹2,500 be invested at the rate of 12% per annum simple interest, which amounts to ₹4,900?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is Option 3 i.e. 8
Principal (P) = Rs. 2500
Amount (A) = Rs. 4900
Rate of interest(R) = 12% p.a
Simple Interest = PRT/100 = Amount - Principal
⇒ S.I. = 4900 - 2500 = Rs. 2400
According to the question -
⇒ 2400 = (2500 × 12 × Time)/100
⇒ Time = (240000)/(30000) = 8 years