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% pa simple interest?
Answer: Option C
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Simple interest is given by the formula SI = (P x T x R)/100,
where P is the principal,T is the number of 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 T x 12.5)/100]
T = 700 / 12.5 = 56 years
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