How much time will it take for an amount of ₹ 360 to yield ₹ 72 as interest at 5% p.a. of simple interest?
- A3 years
- B4 years
- C2.5 years
- D3.5 years
Solution & Step-by-step Explanation
The formula for Simple Interest (SI) is:
SI=
100
P×R×T
Given values:
Principal (P) = ₹ 360
Simple Interest (SI) = ₹ 72
Rate (R) = 5% p.a.
Time (T) = ?
Rearranging the formula to solve for T:
T=
P×R
SI×100
T=
360×5
72×100
T=
1800
7200
=4 years
SI=
100
P×R×T
Given values:
Principal (P) = ₹ 360
Simple Interest (SI) = ₹ 72
Rate (R) = 5% p.a.
Time (T) = ?
Rearranging the formula to solve for T:
T=
P×R
SI×100
T=
360×5
72×100
T=
1800
7200
=4 years