Question

Ramakant wants to earn rs.1,500 interest on his deposits. He plans to buy a sack of grains with the interest. He puts rs.5,000 into his account that earns 2.5% interest. How long will he need to leave his money in the account to earn this interest that would help him buy the sack of grains? Select one: 12 years correctcorrect 10 years 8 years 15 years

Answer 1

12 years is correct answer

Answer 2

Given:

Interest earned per year 'SI' = Rs.1500

Principal amount 'P' = Rs.5000

Rate of interest 'R' = 2.5%

We know that, Simple Interest SI= PNR/100

To find:

N (i.e) the number of years of deposit

N = 1500* 100 / (5000*2.5)

N = 12 years

Answer:

So, Ramakant needs to deposit for 12 years in order to earn Rs.1500 as interest from base amount of Rs.5000 at 2.5%