Sunita invested Rs 12,000 on simple interest at the rate of 10% p.a. to obtain a total amount of Rs 20,400 after a certain period. For how many years did she invest to obtain the above amount?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 2 i.e. 7
Principal (P) = Rs. 12,000
Rate of interest (R) = 10%
Amount (A) = Rs. 20,400
A = P + Simple Interest
20400 = 12000 + SI
SI = 20400 - 12000 = 8400
SI = (P × R × T)/100
8400 = (12000 × 10 × T)/100
8400 = 1200 × T
T = 8400/1200 = 7 years