Vinitha invests ₹ 12,000 on simple interest at the rate of 9% p.a. to obtain a total amount of ₹ 18,480 after a certain Period. For how many years did she invest to obtain the above amount?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. 6 years.
Given:
Principle = 12000
Amount = 18480
Rate = 9%
Formula used:
Simple interest = Amount - Principle ---- (1)
Simple interest = (Principle × time × rate)/100 ---- (2)
Calculations:
Let the time be T.
Using equation (1), we get
Simple interest = 18480 - 12000 = 6480
Using equation (2),
⇒ 6480 = (12000 × 9 × T)/100
⇒ T = 6480/108 = 6 years