In how many years will ₹4,000 invested at the rate of 18% per annum simple interest amounts to ₹5,800?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e 2.5.
Amount = Principal + Simple Interest = 5800 = 4000 + SI
So, SI = 5800 - 4000 = ₹1800
SI = (P × R × T) ÷ 100 ⇒ 1800 = (4000 × 18 × T) ÷ 100
⇒ 1800 = (72000 × T) ÷ 100
⇒ 1800 = 720T
⇒ T = 1800 ÷ 720 =2.5 years