In how many years will a sum of ₹90 become ₹108 at $6\frac{1}{4}\%$ simple interest?
Answer & explanation
Correct answer: option 1
We know ,
Simple interest = \(\frac{ P × R × T}{100}\)
Amount = Principal + Interest
108 = 90 + Interest
Interest = 18
18 = \(\frac{ 90 × 6.25 × T}{100}\)
1800 = 562.5 × T
T = 3.2 year
= 3\(\frac{ 1}{5}\) year