In what time will Rs. 7500 amount to Rs. 8625,if interest is reckoned at 7 1/2<%pa

Answer:

Given that

Amount= Rs 8625

Principle (p) = Rs 7500

Rate (r) = 7 1/2%pa = 15/2 %

Simple Interest(si) = Amount – Principle

si = Rs 8625- Rs 7500

si = Rs 1125

We know that the formula for simple interest

si = (p × r × t)/100

Substitute the given values in the above equation we get,

1125 = (7500 × t × 15/2)/ 100

The simple interest equation becomes

1125 = (7500 × t × 15)/200

225000 = 112500 × t

t = 2 years

Hence the time required to pay ₹7500 amount to ₹8625, if interest is reckoned at 7 1/2<%pa is 2 years.

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