In how much time will a sum of ₹5,000 invested at the rate of 15% simple interest per annum amount to ₹6,500?
Answer & explanation
Correct answer: option 4
Amount = Principal + Simple Interest
6500 = 5000 + Simple Interest
Simple Interest = 6500 - 5000 = 1500
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
1500 = \(\frac{5000 × 15 × Time }{100}\)
Time = 2 years