Multiple choice

The sum of Rs. 450 will amount to Rs. 540 at the rate of 5% per annum at simple interest in

  1. 2 years

  2. 3 years

  3. 4 years

  4. 1 year

  5. 5 years
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Simple interest = Amount - Principal = 540 - 450 = 90. Using SI = (P*R*T)/100, 90 = (450*5*T)/100. 90 = 22.5*T, so T = 90/22.5 = 4 years.

AI explanation

The simple interest earned is the difference between the final amount and the principal, which is Rs. 540 - Rs. 450 = Rs. 90. Using the simple interest formula T = (SI * 100) / (P * R), we substitute the values to get T = (90 * 100) / (450 * 5). The numerator becomes 9000 and the denominator becomes 2250. Dividing the two gives a time period of 4 years.

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