In how much time will a sum of Rs. 14000 amounts to Rs. 20720 at the rate of 6 percent per annum at simple interest?
Show answer & explanation
Correct answer: B
Explanation
Given:
Principal (P) = 14000
Amount (A) = 20720
Rate (R) = 6% per annum
Formula:
SI = (P × R × T) / 100
A = P + SI
SI = A − P
SI = 20720 − 14000 = 6720
6720 = (14000 × 6 × T) / 100
6720 = 840T
T = 8 years