In how much time will a sum of Rs. 15000 amounts to Rs. 21000 at the rate of 8 percent per annum at simple interest?
Show answer & explanation
Correct answer: B
Explanation
Given:
Principal = ₹15,000
Amount = ₹21,000
Interest Rate = 8% per annum
According to the formula:
Simple Interest = (Principal × Rate × Time) / 100
Simple Interest = 21,000 − 15,000 = 6,000
Now,
6,000 = (15,000 × 8 × t) / 100
6,000 = 1,200t
t = 6,000 / 1,200 = 5 years