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

You know, simple interest $(S.I.)$ can be calculated as,
$S.I.=\frac{P\times r\times t}{100}$
where,
$P$ = principal
$r$ = rate of interest and
$t$ = time

∴ By putting values you get,
$81=\frac{450\times 4.5\times t}{100}$
$\Rightarrow t=\frac{100\times 81}{450\times 4.5}\text{years}=4\text{years}$

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