In how many years shall ₹3,500 invested at the rate of 10% simple interest per annum, amount to ₹4,500 ?
Answer & explanation
Correct answer: option 3
Amount = Principal + Simple Interest
4500 = 3500 + Simple Interest
Simple Interest = 4500 - 3500 = 1000
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
1000 = \(\frac{3500 × 10 × Time }{100}\)
Time = \(\frac{100 }{35}\)
= 2\(\frac{6 }{7}\) years