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Question

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

A

5 years

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B

4 years

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C

6 years

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D

3 years

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Solution

The correct option is B: 4 years

Given: Principal, P=Rs. 450.

Rate, R=4.5% per annum

Simple Interest, S.I=Rs. 81.

Let the time taken be t years. Then,

S.I=P×R×t100

81=450×4.5×t100

t=100×81450×4.5

t=100×945×5

t=100×15×5

t=10025=4 years


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