Question

How long will it take for an amount of ₹ 450 to yield ₹ 81 as interest at $4.5\%$ per annum of simple interest?

• A. 5 years
• B. 4 years
• C. 6 years
• D. 3 years

Answer 1

The correct option is B

4 years

Given, ₹ 81 is the simple interest being generated on ₹ 450.

Let the time taken be t years.

We know, $S.I=\frac{P\times r\times t}{100}$

where, S.I = simple interest
P = principal
r = rate of interest and
t = time

$81=\frac{450\times 4.5\times t}{100}$

$\Rightarrow t=\frac{100\times 81}{450\times 4.5}\text{years}=4\text{years}$

So, it will take 4 years for an amount of ₹ 450 to yield ₹ 81 as interest at $4.5\%$ per annum of simple interest.