In how much time will a sum of Rs. 12500 amounts to Rs. 20000 at the rate of 8 percent per annum at simple interest?
Answer & explanation
Correct answer: option 2
By using formulas,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
Amount = Principal + Interest
Now , Simple interest = 20000 - 12500 = 7500
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
7500 = \(\frac{12500× 8 × Time }{100}\)
Time = \(\frac{7500 × 100 }{ 12500 × 8 }\)
= \(\frac{75 }{ 5 × 2 }\)
= 7.5
Ans :- 7.5 years