In how many years will ₹2,500 invested at the rate of 16% p.a. simple interest, amount to ₹4,100?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 4.
Given that
Principal = ₹2500
Rate of simple interest = 16% p.a.
Amount = ₹4,100
Formula used
S.I. = PRT/100
Amount = Principal + S.I.
Where, P = Principal, R = rate of interest, T = time
Calculation
S.I. = 4100 - 2500 = ₹1600
Now,
1600 = 2500 × 16 × T/100
T = 4 years