In how many years, will ₹5,450 amount to ₹8,175, if invested at simple interest at the rate of 12.5% per annum?
Answer & explanation
Correct answer: option 3
Simple interest earned over all years = 8175 - 5450 = 2725
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
2725 = \(\frac{5450 × 12.5 × Time }{100}\)
Time = 4 years