Sunita invested ₹12,000 on simple interest at the rate of 10% p.a. to obtain a total amount of ₹20,400 after a certain period. For how many years did she invest to obtain the above amount?
Answer & explanation
Correct answer: option 4
Principal(P)= Rs 12000
Rate = 10 %
Amount (A) = 20400
A = P + Simple Interest
20400 = 12000 + S.I.
S.I. = 8400
S.I. = \(\frac{P×R×T}{100}\)
8400 = \(\frac{12000×10×T}{100}\)
T = \(\frac{8400}{1200}\)
Time = 7 years