In how many years will Rs. 2,500 invested at the rate of 12% per annum, simple interest, amount to Rs. 3,700?
- A4
- B5
- C2
- D3
Solution & Step-by-step Explanation
Given:
Principal (P) = ₹2,500
Amount (A) = ₹3,700
Rate of interest (R) = 12% per annum
Simple Interest (SI):
SI=A−P=3700−2500=₹1,200
The formula for Simple Interest is:
SI=
100
P×R×T
Substitute the values:
1200=
100
2500×12×T
1200=25×12×T
1200=300×T
T=
300
1200
=4years
Principal (P) = ₹2,500
Amount (A) = ₹3,700
Rate of interest (R) = 12% per annum
Simple Interest (SI):
SI=A−P=3700−2500=₹1,200
The formula for Simple Interest is:
SI=
100
P×R×T
Substitute the values:
1200=
100
2500×12×T
1200=25×12×T
1200=300×T
T=
300
1200
=4years