In how many years shall Rs. 7,000 invested at the rate of 20% simple interest per annum, amount to Rs. 9,000?

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In how many years shall Rs. 7,000 invested at the rate of 20% simple interest per annum, amount to Rs. 9,000?

1. $1\frac{3}{7}$ years
2. 2 years
3. $1\frac{1}{2}$ years
4. $2\frac{1}{2}$ years

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Correct Answer - Option 1 : $1\frac{3}{7}$ years

Given:

Principal is Rs. 7,000

Amount is Rs. 9,000

Rate of interest is 20%

Formula:

A = P + SI,

SI = (P × N × R)/100,

Where,

A is amount,

P is principle,

SI is simple interest,

N is total number of years,

R is rate

Calculation:

SI = 9,000 – 7,000

⇒ SI = Rs. 2,000

According to the formula,

⇒ 2,000 = (7,000 × 20 × T)/100

⇒ 2,00,000 = 7,000 × 20 × T

⇒ T = 2,00,000/1,40,000

⇒ T = 10/7 = $1\frac{3}{7}$ years

Required time period is $1\frac{3}{7}$ years.