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.