In how much time will ₹ 5000 amount to ₹ 6800 at a simple interest of 9% per annum?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 4 years.
Given:
Principal = 5000
Amount = 6800
Rate = 9%
Formula used:
Simple interest = Amount - Principal ---- (1)
SI = PRT/100 ---- (2)
Where, SI = Simple interest, P = principal, R = rate and T = time
Calculations:
Usinge equation (1),
Simple interest = 6800 - 5000 = 1800
Using equation (2), we get
⇒ 1800 = (5000 × 9 × T)/100
⇒ T = (18 × 2)/9
⇒ T = 4 years