Question

Find the time required for a sum to become $\frac{6}{5}$ times of itself at the rate of 5% p.a. Simple Interest.

• A. 4 years
• B. 6 years
• C. 10 years
• D. 8 years

Answer 1

The correct option is A 4 years

Let the sum invested be ₹ x.
So, the amount = ₹ 1.2x.

We know that,
Principal + Interest = Amount.
So, the interest earned = ₹ (1.2x - x) = ₹ 0.2x.

The Simple Interest earned on a sum of ₹ P for a period of T years at the rate of R% p.a S.I is given by $\frac{P\times R\times T}{100}$.

So, $0.2x=\frac{x\times 5\times T}{100}$
Hence, the time = T years = 4 years.