Multiple choice

In what time will Rs. 72 become Rs. 81 at 6$\frac{1}{4}$% per annum simple interest?

  1. 1$\frac{1}{2}$ years

  2. 2 years
  3. 2$\frac{1}{2}$ years

  4. none of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Interest = 81 - 72 = 9. Principal = 72. Rate = 6.25% = 25/4%. Simple Interest formula: I = (P * R * T) / 100. 9 = (72 * 25 * T) / (4 * 100). 9 = (18 * 25 * T) / 100. 9 = 4.5 * T. T = 2 years.

AI explanation

Using the simple interest formula, the interest earned is 81 minus 72, which equals 9 rupees. Setting the time equal to 100 multiplied by the interest, and dividing the result by the product of principal and rate, gives time equal to 900 divided by 450. This calculation results in a required time of 2 years.

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