How many years will it take for an investment of ₹5,000 to earn ₹1,000 as simple interest at an annual rate of 8%?
Show answer & explanation
Correct answer: D
Explanation
Given:
SI = ₹1000, P = ₹5000, R = 8%
Simple Interest = P × R × T / 100
1000 = 5000 × 8 × T / 100
1000 = 400T
T = 1000/400
T = 2.5 years