In how many years and months will a sum of ₹24 becomes ₹56 at 16% simple interest per annum ?
Answer & explanation
Correct answer: option 2
Amount = Principal + Simple Interest
56 = 24 + Simple Interest
Simple Interest = 56 - 24 = 32
We know ,
Simple Interest = \(\frac{Principal ×Rate × Time }{100}\)
32 = \(\frac{24 × 16 × Time }{100}\)
2 = \(\frac{24 × Time }{100}\)
Time = 8 years 4 months