Question

In what time ₹1250 will amount to ₹1400 at 6%p a si

Answer 1

Given

Principal Amount = (P) = 1250

Rate of Interest Per Annum = (R) = 6%

Future Amount (inclusive of interest) = (F) = 1400

Interest Method = Simple Interest

We know that ...

Under Simple Interest..

Future Amount (F) = P(1+RN)

(where P = Principal Amount, R =Rate of Interest Per annum, N = No.of years)

Subsitute Given information in the above formula..

1400 = 1250 ( 1 + 6%.N)

1400 = 1250 (1 + 6/100 ×N)

1400/1250 = (1 + 0.06N)

1.12 = 1 + 0.06N

1.12 - 1 = 0.06N

0.12 = 0.06N

0.12/0.06 = N

2 = N...

So .... It takes 2 years for 1250 to become 1400 at 6% Simple Interest...