In how many years will ₹150 produce the same simple interest at 8% per annum as ₹800 produces in 3 years at the rate of 4.5% per annum?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → 9
Simple interest is \(\text{SI}=\frac{P\times R\times T}{100}\). Find the interest on ₹800 first, then the time in which ₹150 earns the same amount at 8%.
Interest on ₹800: \(\displaystyle\frac{800\times4.5\times3}{100}=108\)
Interest on ₹150 in \(T\) years: \(\displaystyle\frac{150\times8\times T}{100}=12T\)
\(12T=108\), so \(T=9\) years