Question

In how many years will Rs. 7000 become Rs. 8680 at 4% per annum simple interest?
1. 3 years
2. 2 years
3. 5 years
4. 6 years

Answer 1

Correct Answer - Option 4 : 6 years

Given:

Amount = Rs. 8680

Principal = Rs. 7000

Rate = 4% per annum

Formula used:

Time = (Simple interest × 100)/(Principal × rate)

Simple interest = Amount – principal

Calculation:

Simple interest = Rs.(8680 - 7000)

⇒ Rs. 1680

Time = (1680 × 100)/(7000 × 4)

⇒ 6 years