Question
How long will it take for a sum of money to grow from Rs.1250 to Rs.10,000, if it is invested at 12.5% p.a simple interest?
Answer: Option B
SIMPLE INTEREST IS GIVEN BY THE FORMULA SI = (PNR/100), WHERE P IS THE PRINCIPAL, N IS THE NUMBEROF YEARS FOR WHICH IT IS INVESTED, R IS THE RATE OF INTEREST PER ANNUM
IN THIS CASE, RS. 1250 HAS BECOME RS.10,000.
THEREFORE, THE INTEREST EARNED = 10,000 – 1250 = 8750.
8750 = [(1250 X N X 12.5)/100]
=> N = 700 / 12.5 = 56 YEARS.
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SIMPLE INTEREST IS GIVEN BY THE FORMULA SI = (PNR/100), WHERE P IS THE PRINCIPAL, N IS THE NUMBEROF YEARS FOR WHICH IT IS INVESTED, R IS THE RATE OF INTEREST PER ANNUM
IN THIS CASE, RS. 1250 HAS BECOME RS.10,000.
THEREFORE, THE INTEREST EARNED = 10,000 – 1250 = 8750.
8750 = [(1250 X N X 12.5)/100]
=> N = 700 / 12.5 = 56 YEARS.
Was this answer helpful ?
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