Question

How long will it take for an amount of ₹450 to yield ₹810 as interest at $4.5\%$ per annum of simple interest?

• A. 40 years
• B. 45 years
• C. 50 years
• D. 55 years

Answer 1

The correct option is A 40 years

Given, ₹810 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

$\Rightarrow 810=\frac{450\times 4.5\times t}{100}$

$\Rightarrow t=\left(\frac{100\times 810}{450\times 4.5}\right)\text{years}=40\text{years}$

So, it will take 40 years for an amount of ₹450 to yield ₹810 as interest at $4.5\%$ per annum of simple interest.