Question

For principal of $Rs.5600,$ amount to be paid is $Rs.6720$ at $8\%$ rate of interest per annum. Find the time (in years).

• A. $2.5$ years
• B. $3$ years
• C. $3.5$ years
• D. $2$ years

Answer 1

The correct option is A: $2.5$ years

Given: Principal $=Rs.5600$

Rate of interest $=8\%$

and, Amount $=Rs.6720$

Interest $=$ Amount $-$ Principle
$=6,720-5,600$
$=Rs.1,120$

Interest $=\frac{P\times T\times R}{100}$

$\Rightarrow 1,120=\frac{5,600\times 8\times T}{100}$

$\Rightarrow T=\frac{100\times 1120}{5600\times 8}$

$T=\frac{140}{56}=\frac{10}{4}=\frac{5}{2}$

$\therefore T=2\frac{1}{2}=2.5$ years