In how much time will a sum of Rs. 5250 amounts to Rs. 9870 at the rate of 11 percent per annum at simple interest?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is Option 1 i.e. 8 years.
Given:
Principal = 5250
Amount = 9870
Rate = 11%
Formula used:
SI = PRT/100 ----- (1)
SI = Amount - Principal
Where, P = principal, R = rate and T = time
Calculations:
SI = 9870 - 5250 = 4620
Using equation (1), we get
⇒ 4620 = (5250 × 11 × T)/100
⇒ T = 8 years