In how much time (in years) will ₹7,200 amount to ₹8,928 at simple interest at the rate of 8% per annum?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 3.
Simple Interest = (P × R × T)/100
Where, P = Principal; R = Rate of interest per annum; T = Total time
Simple Interest (SI) = Amount - Principal = 8928 - 7200 = ₹1,728
Principal (P) = ₹7,200
Rate of interest per annum (R) = 8%
So, 1728 = (7200 × 8 × T)/100
⇒ 1728 = 576T
⇒ T = 1728/576 = 3
Therefore, the required time is 3 years.