Question

In how many years will Rs.5000 grow to Rs.10000 at 12.5% Simple Interest?

• A. 8 years
• B. 12 years
• C. 20 years
• D. 12 years

Answer 1

Answer:

A. 8 years

Here's how to solve this problem:

1. Understand Simple Interest:

• Simple Interest (SI) is calculated using the formula: SI = (P R T) / 100

  • Where:

    • P = Principal amount

    • R = Rate of interest per annum

    • T = Time period in years

2. Identify the Given Values:

• Principal (P) = Rs. 5000

• Amount (A) = Rs. 10000 (This is the final amount, including the principal)

• Rate (R) = 12.5%

3. Calculate the Simple Interest:

• Simple Interest (SI) = Amount (A) - Principal (P)

• SI = Rs. 10000 - Rs. 5000 = Rs. 5000

4. Apply the Simple Interest Formula to Find Time (T):

• SI = (P R T) / 100

• 5000 = (5000 x 12.5 x T) / 100

5. Solve for T:

• 5000 100 = 5000 x 12.5 x T

• 500000 = 62500 x T

• T = 500000 / 62500

• T = 8

Therefore, it will take 8 years for Rs. 5000 to grow to Rs. 10000 at 12.5% simple interest.