Question

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

• A. 4 years
• B. 6 years
• C. 3 years
• D. 2 years

Answer 1

The correct option is A 4 years

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, $₹81=\frac{₹450\times 4.5\times T}{100}$
Hence, the time required = T = 4 years.