Question

Mr. R invested Rs. $70,000$ in a bank at the rate of $6.5\%$ p.a. simple interest rate. He received Rs. $85,925$ after the end of term. Find out the period for which sum was invested by Mr. R.

• A. $2.5$ years
• B. $3.5$ years
• C. $4.5$ years
• D. $5.5$ years

Answer 1

The correct option is B $3.5$ years

We know A $=P(1+it)$
i.e., $85,925=70,000\left(1+\frac{6.5}{100}\times t\right)$
$85,925/70,000=1+\frac{100+6.5t}{100}$
$22.75=6.5t$
$t=3.5$.